Tax Cheats Received $1.4 Billion In Stimulus Tax Credits

June 27, 2012 – 7:14 am

Surprise!

(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!

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 Right Wing News and Stop The ACLU.

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This entry was written by William Teach and posted on at 7:14 am and filed under Barry Obama, Democrats. Bookmark the permalink. Follow any comments here with the RSS feed for this post.
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One Response to “Tax Cheats Received $1.4 Billion In Stimulus Tax Credits”

  1. Gumball_Brains says:
    June 27, 2012 at 9:52 pm

    You mean Sheriff “I aint nuthin like you middle-class peons” Joe Biden? Or, do you mean, Joe “Only Indians work at 7-11” Biden?

    You know what else?

    When the New Hampshire-based “green energy” company Mascoma Corp. was awarded its first multimillion-dollar grant by the state of Michigan in 2008, it promised to create at least 70 jobs by the end of 2012. Since then, the company has received an addition $100 million from federal government and has only created three jobs.

    When the people of Michigan were footed the bill for $20 million grant, state lawmakers hailed it as a milestone in the quest for clean, renewable energy.

    “Michigan is proud to partner with Mascoma as a part of our commitment to lead the nation in alternative energy production,” former Gov. Jennifer Granholm said on Oct. 7, 2008. “This company, and their partners, will create jobs in Michigan.”

    “Though jobs projections and plant construction have been wildly exaggerated, the company is preparing to go public. On Sept. 16, 2011, Mascoma filed an S-1 with the SEC in preparation for an Initial Public Offering to raise $100 million,” the report adds.

    However, even though the company feels confident enough to go for an IPO, the S-1 filed with the SEC shows that the company has a deficit of over $135 million. Even worse, a full 86 percent of the company’s revenue comes from government grants.

    Now correct us if we’re wrong, but a company that depends almost entirely on the feds for revenues and has a deficit of that magnitude doesn’t sound like it’s ready to go public.

    “In November 2008, Mascoma was awarded a $910,000 grant from the Next Generation Energy Board of Minnesota,” Michigan Capitol Confidential reports.

    Then-Gov. Tim Pawlenty announced the grant and said: “The development of Minnesota’s first commercial scale cellulosic ethanol plant is closer to reality because of this joint venture.”

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