House stimulus package makes $7500 first-time home buyer tax credit a real tax credit... for some people

The good news: The House stimulus bill changed the federal first-time homebuyer $7500 tax credit from something you had to pay back (which means it was never really a credit) to something you get to keep forever. It's $7500 in free money when you buy your first home.

The bad news: The House bill starts phasing out the tax credit if you make $75,000 a year, and phases it out completely if you make $95,000 a year.

As I've said before. If you live in NYC - or even Washington, DC - and you make $75,000 a year, you're not rich. A one bedroom condo in DC could easily cost you $350,000 (and to rent, a 500 sq ft studio apartment in my building costs around $1600 a month - and I don't live in the Taj Mahal). Then there are student loan payments (which yuppies often have to make, as they tend to be well educated) - they often total a second rent payment. Add in the cost of the groceries, and the cost of living is significantly higher in cities like NY and DC (and probably SF and many more). But the Democrats think you're rich, so no stimulus for you. Yet again, another provision of the stimulus bill that won't apply to lots of people living in big cities because on paper they're "rich," when in reality they're not.