In the recent housing tax credit program - which I opposed because it artifically manipulated the market and was only for first-time buyers (by their definition) - an amazing number of people received benfits that should not have. Result, they must return the money.
In a report just issued by the Treasury Department’s Inspector General for Tax Administration (TIGTA), it is reported that 1.8 million taxpayers claimed benefits to the tune of $12.5 billion. More than half of them - 950,000 people received a credit for homes purchased in 2008. They must repay the money.
Anyone who bought their home with the credit correctly but sells it for a profit within 36 months also must repay the credit. Don't know if the credit lowers the basis or not.
Over $19 billion dollars has been claimed since the initial program was enacted in July 2008, with more than 2.6 million people participating.
It seems that everytime Congress messes with the free market, abuses result.
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Steve Hoffacker - Consultant, Coach, Author, Blogger, Photographer, Motivator, Teacher, & Strategist - for Realtors, Real Estate Sales Professionals, Home Builders, New Home Salespeople, Entrepreneurs, Small Business Owners, and Independent Sales Representatives.
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People will always try to take advantage thinking they will not get caught!
Amen. The government has not helped the real estate industry...from PMI (allowing banks to believe they were bulletproof) to the awful 8k first time buyer program that gave our money to those statistically least likely to pay their mortgage...first time buyers.
Steve: You are so right---there is a law of physics that goes something like this: There are times when one attempts to change the course of an undesirable situation by interfering with it's natural unfolding (problem solving), one finds the solution to be as problematic as the undesirable situation itself.
Rob,
It really is amazing but true. :)
Steve
Jeffery,
Thank you for those comments. When the government meddles, it takes a long time for it be corrected. :)
Steve
Paula,
Very well stated. Thank you. :)
Steve
Steve ~ Sad but true.
Tish,
Unbelievable isn't it? :)
Steve
That's why it's best for the government to just stay out of it all.
Tim,
AGREED!!
Steve
Steve - congress never confused legislating with "doing". They write this broad sweeping legislation or programs and then rely on bureaucrats to implement.
Mike,
Often they write legislation with placeholder blank pages or sections - to be filled in at a later date. :)
Steve
Steve, it's bad when the tax credit is almost expiring and an agent tells you his clients are interested in one of your listings if you can backdate the contract...I wonder how many times that happened? Crazy!
Wanda,
About the same number of times that a customer wants a relative of theirs with a license to be included in the deal. :)
Steve
Where there is money and government, you will always find fraud Steve...
Paul,
A truism. Thanks.
Steve
The government always wants to ride in on their white horses to save us. Who's going to save us from the follies of government?
Jon,
That's the real issue. We have let the monster get too big. :)
Steve
Steve
I would like to know where the oversight is for my tax dollars?
Gooc luck and success.
Lou Ludwig
When Vann Jones asked (derisively) "How's that free market working out for you?" the response should have been "I don't know because you Progressives keep screwing around with it."
And every time they do, it backfires.
Lou,
Apparently there is some here in Treasury, but not sure about much else. :)
Steve
Lane,
True. They really don't like the free market because they didn't think of it. :)
Steve
Unfortunately there will likely always be fraud, just like there will always be lots of folks doing things right.
Matt,
That is true also. :)
Steve
Steve,
The sad part is the only surprising thing is there wasn't more fraud.
It's a sad thing when big fraud is rewarded and only little frauds are prosecuted! I say jail them all in proportion.
Bill
Steve, it goes to show that the white collar crime is not easily punishable if at all. I feel that history repeatedly teaches that the working people and the strives bear the brunt of crimes that are not even measurable by our standards and perspectives. An example is the 'disappearance' of the federal reserve and the concomitant bankruptcy of the US nation state shortly thereafter. The people should unite, and form a new "government". Just one dissenting thought from north of the border ;) Cheers.
Bill,
It comes back to the governmnet entitlement and giveaways. There are excesses all around. :)
Steve
Jark,
Good observations about the crime. It's impact definitely is apportioned among us all. :)
Steve
Steve,
How is this the fault of the Government? Like you are me these civil servants are imperfect, will and do make mistakes and don't always know the outcome of Bills projected or the long term effects. To them, the tax credit was a good thing, a help up, a way to get the economy going again. But the greedy took advantage of the situation and now must pay. The results of man's greed is show in your figures.
Steve I'll say it again we need a higher intervention to make things right, not the next Democrat, not the next Republican, not even members from the Tea Party movement can solve man's astonishing degree of problems. I'm just saying!
Dee,
I didn't say it was government's fault, but since you pose the question, it is the government's fault in four ways: (1) Congress had no right to pass the bill and was sorely mistaken if they thought this would stimulate a recovery, (2) Congress provided no oversight mechanism to monitor compliance, (3) any existing mechanism at the IRS to oversee the claims and disallow fradulent claims was not utilized until now, and (4) interference in the private sector invariably leads to more issues. :)
Steve
Whenever government decides that they need to overregulate, they usually end up over their heads and we end up paying.
Steve,
And there is a very thin line between proper regulation and overregulation - that is usually crossed. :)
Steve
Surprised? C'mon...
Jay,
Exactly. :)
Steve