Calculated Risk has another great analysis to demonstrate just how politically popular but largely ineffective tax cuts are as a form of economic stimulus.
Seems the tax credit for first-time home buyers, $8,000, will cost on the order of $16 billion, but only result in the purchase of 350,000 homes. Put differently, taxpayers are actually paying $45,000 for every home bought!!!
Gorilla thinks: “Next up: Cash For Debunkers, where we provide tax credits to send all the right-wing crazies to find Osama bin Laden in Tora Bora!!!”
Tags: housing, Osama bin Laden, tax credits