House Flipper Tax Credit Will Cost More than Promised

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The NYT substantially understated the cost of a $15,000 tax credit that the Senate approved for anyone who sells their home to buy another home in 2009. (Actually, the credit is for buying a home, but the vast majority of buyers will also be sellers.) The NYT told readers that the cost of this credit, combined with a $1,000 credit for buying cars, would be $30 billion. Actually, the Joint Tax Committee puts the cost of the house flipper tax credit alone at $35 billion. The combined cost of the two measures would be close to $45 billion.

--Dean Baker

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