The recent extension of tax credits for first-time home buyers is just another example of how our tax system favors the more affluent taxpayers.
This new tax credit bill includes people who have lived in their current homes for at least five years and wish to move up to a more expensive home. The upper price limit on the new home purchase is set at $800,000. The tax credit limit for them is $6,500. Therefore, any families that buy during the time span provided in this bill can move up from their half-million-dollar homes to $750,000-$800,000 homes and collect the tax credit.
It takes at least $200,000 in annual income for a family to qualify for a 90 percent mortgage on an $800,000 home. These "poor" families really do need this government help.
