Wednesday, February 8, 2012

Another Bogus "Tax Cut" Scam!

Dem. Touted Payroll Tax Cut, Part Deux

John Palm, Editor
GCN Live.com
Feb 8, 2012
http://www.gcnlive.com/wp/2012/02/08/dem-touted-payroll-tax-cut-part-deux/

Remember the payroll tax that consumed Congress and Senate’s attention days before Christmas? The two month extension is now coming to an end, meaning another agreement has to be made by the end of February.

However, now the American public knows exactly where these so-called “cuts” are coming from: new home buyer’s mortgage fees.

According numerous investigations – including the CBS News video below – there will be a minimum of one-tenth of one percent increase on Fannie Mae and Freddie Mac mortgage loans, possibly higher. The increases will be applied all loans over the next decade and will last the length of the loan – often 30 years.

So where a common individual will save a few hundred on their paycheck from the payroll tax cut, many new home buyers will face thousands of dollars, even tens-of-thousands, in new mortgage fees over the course of their loan.

To boot, the new monies collected from the new mortgage fees will not return to the Social Security fund to cover the payroll tax, but will be thrown into the general fund for Congress to do with the money as they please.

When did a “cut” become taking a tax from one location (payroll tax) and applying it to a new item (mortgages)? It appears the payroll tax cut is no tax cut at all, but a shift of funds and taxes. Is this simply a ploy for President Obama to continue to campaign on being a tax-cutter? Does the Congress and Senate have no idea how to truly cut the government’s budget? Or is it a little bit of both…

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