Tax Cheats Received $1.4 Billion In Stimulus Tax Credits


(Washington Times) Tax cheats were given $1.4 billion in government-backed mortgage loans under President Obama’s economic stimulus, and the government doled out at least an additional $27 million in tax credits to delinquents who took the first-time-homebuyer tax break, according to a government audit released Tuesday.

Under government rules, delinquent taxpayers are supposed to be ineligible for the mortgage insurance program unless they have reached a repayment agreement with the Internal Revenue Service. But the Federal Housing Administration didn’t have the right controls to weed out bad applications, said the Government Accountability Office, Congress‘ chief investigative arm.

The Stimulus didn’t provide for the proper application controls? The hell you say!

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That meant FHA insured $1.4 billion in mortgages for 6,327 borrowers who collectively owed $77.6 million in unpaid taxes, or an average of more than $12,000 each.

Liberals should be outraged that Obama’s poorly written Stimulus failed to collect that tax money. But, then, they haven’t been concerned with the billions upon billions wasted on “green” energy companies that were bound to fail. Nor that most of the Stimulus was wasted in full.

“In the name of ‘stimulus,’ the federal government gave mortgage insurance to thousands of people we knew were tax cheats and had a bad track record paying their debts,” said Sen. Tom Coburn, Oklahoma Republican, who joined a bipartisan group of other lawmakers to request the investigation. “The federal government needlessly put taxpayers on the line to help tax cheats buy homes. Congress needs to ensure that tax cheats are no longer allowed to take advantage of FHA programs.”

That sounds similar to what the Stimulus did for “green” energy companies, giving money to companies with bad track records, shoddy products, and little chance of succeeding. Just another example of Obama’s government, and the government in general, wasting taxpayer money and failing miserably. And these are the people who want to be in charge of America’s health care? Oh, brother.

BTW, where was Sheriff Joe? Wasn’t he supposed to be in charge of rooting out waste and keeping an eye on the Stimulus?

Crossed at Pirate’s Cove. Follow me on Twitter @WilliamTeach.

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