ETHICAL AND PUBLIC POLICY ISSUES IN TAX LEGISLATION: THE CASE OF THE FIRST-TIME HOMEBUYER TAX CREDIT

Abstract

This paper discusses the provisions of the first-time homebuyer tax credit by comparing them with the provisions of other tax credits. Desirable attributes for tax systems are also stated and defined. While the first-time homebuyer tax credit may be stimulating the housing market as designed, it violates the desirable attributes of good tax policy. Ethical and public policy implications are given.