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Wednesday, June 27, 2012

GAO report: At least $1.4 billion of Obama’s stimulus went to tax cheats « Hot Air

GAO report: At least $1.4 billion of Obama’s stimulus went to tax cheats « Hot Air: "At the start of his term, one of President Obama’s ostensible goals for the $800 billion-strong Recovery Act was to strengthen the economic recovery by providing some cushion in the housing market. (Of course, he proclaimed, there would be mechanisms in place to prevent the possible abuse of his economic largesse.) Within the stimulus act’s provisions was a first-time homebuyer tax credit and mortgage assistance, which granted the Federal Housing Administration the authority to insure loans at a higher rate in high-cost housing markets. Applicants who were delinquent on their federal taxes weren’t supposed to be eligible to receive the FHA’s stimulus-assistance, but — gasp — the FHA didn’t really have a system in place to obtain that information.

The result? The federal government doled out almost $1.5 billion in tax credits and government-backed mortgage loans to tax cheats, according to a GAO audit released Wednesday."

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