If you agree that the government should get involved more or less directly in running the economy, you probably agree that the American Recovery and Reinvestment Act of 2009 is a pretty good idea. All told, it provides more than $500 billion in spending on infrastructure, health care, education, energy, homeland security, and law enforcement, and $275 billion in tax cuts.
It's no secret that it included a provision to cut a home-buyer's federal tax bill by $8,000. According to www.federalhousingtaxcredit.com, "The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009, and before December 1, 2009."
This might come as a shock, but this legislation has some drawbacks.