The Moderate Income Homeowner Tax

By Dean Baker - March 2, 2008, 10:01PM

There are some folks in Congress who apparently think that the best thing that government can do for low and moderate income families is to impose a special 18 percentage point tax on their income. Of course they don’t call it an income tax, they call it being a homeowner in a home on which families have no equity.

Yep, you guessed it -- this is yet another twist on those wild and crazy bailout schemes that the bankers’ buddies are devising to use government money to buy up their mortgage debt. Prior posts have focused on the money going from ordinary taxpayers to incredibly wealthy investment bankers. This one focuses on how badly these plans screw the moderate income families they are supposed to help.