Refundable. The $8K giveaway, cash for clunkers and programs like them aren’t tax ‘cuts,’ they’re programs that just hand people a check! These are what is known as “refundable” giveaways. You get your “refund” whether or not you pay taxes. On the mortgage credit you have to file a tax form. Big deal. You still get PAID by the taxpayers whether or not you pay taxes.  It’s like the euphemistically named “Earned Income Tax Credit.” You don’t actually earn income, in fact, you get free money from the feds if you DON’T have income. This one’s for you soap opera watchers!*

*Ray Nagin’s disparaging characterization of people he didn’t want coming back to rebuild New Orleans after the man made globally warming induced Hurricane Katrina.