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Don't Burst the Bubble: An Analysis of the First-Time Homebuyer Credit and Its Use as an Economic Policy Tool

The John Marshall Law Review, Vol 45, Fall 2011

28 Pages Posted: 25 Jul 2012  

Sarah Webber

University of Dayton

Date Written: December 21, 2011

Abstract

In 2008, faced with a looming real estate crisis, Congress hastily acted to stabilize the economy by offering a first-time homebuyer credit. This tax credit was trumpeted as a solution to the excess inventory of homes for sale and to stop the free-fall in home values. The credit, however, failed to deliver on its promises. By analyzing the first-time homebuyer credit, its creation, its implementation and its economic impact, this Article concludes that, when compared to alternative policy solutions, Congress erred in using the tax code to implement a first-time homebuyer credit.

Keywords: Tax, IRS, Credit, Homebuyer, First-time Homebuyer Credit

Suggested Citation

Webber, Sarah, Don't Burst the Bubble: An Analysis of the First-Time Homebuyer Credit and Its Use as an Economic Policy Tool (December 21, 2011). The John Marshall Law Review, Vol 45, Fall 2011. Available at SSRN: https://ssrn.com/abstract=2116501

Sarah Webber (Contact Author)

University of Dayton ( email )

300 College Park
Dayton, OH 45469
United States
937-229-2432 (Phone)

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