Is the New Homebuyer Tax Credit Bad for America?

The political momentum to keep this tax credit may make it permanent.

Economists say extending tax credit for first-time homebuyers is bad policy

No doubt, a big tax break for first-time homebuyers is good politics. ...

Although the politics are a surefire winner, especially here in Nevada, some economists across the political spectrum question whether the tax credit is good policy.

"It's terrible policy," says Mark Calabria of the libertarian Cato Institute.

"It's awful policy," says Andrew Jakabovics, associate director for housing and economics at the liberal Center for American Progress. "It's incredibly expensive. It's not well targeted."

Read more on the tax credit.