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First Time Homebuyers Tax Credit

The Son of the Housing Bubble: First-Time Homebuyers Tax Credit

Dean Baker | Posted 06.18.2012 | Business
Dean Baker

It's often said that the difference between the powerful and the powerless is that the powerful get to walk away from their mistakes while the powerless suffer the consequences. The first-time homebuyers' tax credit, which was added to President Obama's original 2009 stimulus package, provides an excellent example of the privilege of the powerful. Many of the 11 million underwater homeowners in the country can blame the incentives created by the first-time homebuyers credit for their plight. This was really bad policy, which should have been apparent at the time. Unfortunately, it is only the victims who are suffering, not the promulgators of the policy. Welcome to Washington.

Policy Follies in the Housing Market: The First-Time Homebuyers Tax Credit

Dean Baker | Posted 04.14.2012 | Business
Dean Baker

If this policy had been proposed by liberals with the idea of helping the poor, its failure likely would have been a huge political issue in the 2012 election and likely for many years beyond.