After the 2001 recession they generated "excessive growth of sectors that rely on either fixed-asset investment or credit", argues Raghuram Rajan of the University of Chicago.
Analysts at S&P reckon that the revenues of large states, such as Texas, California and New York, would have to fall by 45% or more for debt service to be jeopardised.As a result, municipal defaults should remain low relative to similarly rated corporate credit, argues Mr Friedlander.
Advocates of the tax credit argue that the incentive can turn renters into buyers.
Such challenges pose "a loss of confidence in government, diminished trust in the good faith of contracting parties and a reluctance to extend credit," argues Levy.
Others think that many societies in the area deserve credit, arguing that regional differences in Olmec ceramics, for example, show that the style was not of a central origin.
The inspector general for the Internal Revenue Service has estimated over one-fifth of EITC payments are improperly issued, though defenders of the credit argue that payments can be deemed improper without being fraudulent.
Republican lawmakers have generally opposed refundable tax credits, arguing that people should not receive tax refunds if they did not pay income taxes in the first place.
The three landlords at Gateway filed a lawsuit in December to block the tax credits, arguing that the loss of Prudential, which leased a combined 922,000 square feet, would have a "devastating financial impact" on both Gateway and Newark, as the office vacancy rate shot up.
The government has urged MPs to back a 1% cap on annual rises in working-age benefits and some tax credits, arguing it is vital to cutting the deficit.
The coalition government has urged MPs to back a 1% cap on annual rises in working-age benefits and some tax credits, arguing it is vital to cutting the deficit.
