This past December President Obama joined pushed through a deal whereby the payroll tax would be extended by a whole two months. Supposedly this savings would save the economy and country. But guess who will be paying for this tax cut? Home buyers and those attempting to refinance their mortgages!
The payroll tax cut law mandated that a new minimum tax of 1/10 of 1% on all Fannie Mae and Freddie Mac backed loans – and this amount could well go higher. The tax will be imposed for the next 10 years and lasts for the life of the loan. New home owners could find themselves paying an extra $10,000 over the course of the loan to pay for the “tax cut.” That should do wonders for the housing slump we are facing. But don’t look for an explanation of this tax on your closing statements. It is hidden and built into the interest rate you will pay. Imagine if a bank or mortgage company tried to sneak something like this through without disclosing it. But if the government does it, it’s OK.
Well, where will this tax go to? Believe it or not it won’t replenish the Social Security Fund that the payroll tax cut is raiding. [By the way, whatever happened to the “locked box” on Social Security that John Kerry talked about? I guess the locked box does not apply to a President who is a Democrat.] No, the taxes collected will go to the general treasury to be spent at the whim of politicians. Makes you feel good, doesn't it?
Conservative commentary by James J. Pirretti
1 comment:
For all those Obamamaniacs out there, remember that ignorance can be cured, but stupidity is forever.
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