Cody Willard Gets It Wrong About Home-Buyer Tax Credit
Reported by Ellen - June 29, 2009 -
Guest blogged by Dan
Fox Business’ Cody Willard sounded off in a recent blog post about the recently enacted first time home buyer tax credit, calling it a subsidy for the rich. But Willard seems to have mistaken “first time home buyer” for “new home buyer.” Had he bothered to review the actual credit, he would have known that the first time home buyer credit is for well, just that. Oh, and there’s also a $75,000 income cap for single buyers, $150,000 for married couples. It’s hard to see how that’s a subsidy for the rich from the poor.
In his post, Willard says, “The money for that $8,000 a year targeted tax trick for “new home buyers” that the Democrat/Republican Regime created a few months ago means that anybody who’s renting is subsidizing those people who are rich enough (or stupid/dishonest enough) to already OWN homes.”
Cody, dude, the "tax trick" is for FIRST TIME BUYERS. Not NEW HOME BUYERS. You don't get it for buying a NEW home. You get it for buying your FIRST home. So those of us stupid or dishonest enough to own our homes already don't get to use the "tax trick."
As U.S. News & World Report states, the tax credit “applies only to first-time home buyers and principal residences.” The tax credit is not an automatic $8,000 but a credit of 10% of the purchase price, capped at $8,000. A first time buyer is defined as "someone who hasn't owned a principal residence for three years before buying a house." Furthermore, “The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, that's $150,000 for married couples. Those earning more than these thresholds may be eligible for reduced credits.”
That sounds like a credit for the middle class, not a credit for rich people.
