Did You Know...

   

Middle Class Payroll Tax Cut Extension Comes Courtesy of Mortgage Fees on Home Buyers

Share
By Doug Powers  •  February 6, 2012 01:36 PM

**Written by Doug Powers

During the clamor to pass an extension of the payroll tax cut, President Obama asked “What does $40 mean to you?”

His opponents of the way the extension was handled might now be able to counter with, “What does $9,500 mean to you?”

(CBS News) Just before Christmas, American workers got a rare gift from Washington politicians – the current payroll tax cut would be extended for two more months. At the time, both President Barack Obama and House Speaker John Boehner lauded the move to avoid a tax increase for millions of working Americans. But there’s something the politicians weren’t bragging about – the fact that they’re paying for the two-month tax cut with what has turned into a brand new fee on home buyers.

The new fee is a minimum of one-tenth of 1 percent on Fannie Mae- and Freddie Mac-backed loans, and is likely to go much higher. It will be imposed for the next 10 years on most mortgages and refinancings and it lasts for the life of the loan. For every $200,000, it amounts to an extra $15 dollars a month.

It’s bad news for Patty Anderson, who’s buying a home in Virginia. Anderson will save a couple hundred dollars from having her payroll tax cut extended but her mortgage broker told her the new fee would cost her almost $9,500.
[…]
The $35.7 billion collected in fees won’t go into the Social Security fund to replace the lost payroll tax. It goes to the general treasury where Congress can spend it however they please.

Is this outlined in the Homeowners Bill of Rights?

For now, file this under “robbing Peter for decades to pay Peter for a couple of months”:

**Written by Doug Powers

Twitter @ThePowersThatBe

blog comments powered by Disqus

Peer-reviewed study: Obama’s mixed messages contributing to climate change, mass confusion

September 1, 2015 10:19 AM by Doug Powers

obamaclosing

Spending ensues, no matter what (and that’s the important thing)

Peak pandering: Ahead of Alaska visit, Obama officially renames Mt. McKinley

August 31, 2015 07:48 AM by Doug Powers

obamapoint

“The mountain has spoken”

‘Degrade and ultimately destroy’ ISIS update: JV team ‘growing like crazy’

August 30, 2015 12:03 PM by Doug Powers

obamaisis1

Time to escalate the war on climate change

With friends like these: Iran deputy foreign minister welcomes Harry Reid’s Senate filibuster intention

August 30, 2015 09:32 AM by Doug Powers

harryreid

For the filibuster before he was against it before he was for it again

Thursday open thread: Hillary talks gun control in wake of Va. shootings; Pentagon conforms ISIS threat to match WH narrative

August 27, 2015 08:37 AM by Doug Powers

hillarychillin

Just chillin’ in Opportunist-ville


Categories: Barack Obama, Guns, Hillary Clinton, Media, Politics

Follow me on Twitter Follow me on Facebook