Obama’s Payroll Tax Cut Spawns Mortgage Fees

Filed in Gather Politics News Channel by on February 6, 2012 0 Comments

President Obama talked about helping the little guy with a temporary payroll tax cut; but keep a couple of age-old sayings in mind: “There’s a sucker born every minute” and “if it sounds too good to be true it is”. The tax cut saves average workers a few hundred dollars. But if those suckers–er workers–buy a house they’ll spend thousands more paying for it.

That tax cut sounded too good. Conservatives in congress talked about paying for a long-term cut in payroll taxes with spending cuts. But it turns out the Democrat controlled Senate passed their temporary version along with a 10-year mortgage fee (aka tax). Democrats love helping people, as long as someone else pays.

CBS News discovered the hidden fee as revealed in this story.

That 1/10 percent addition to the interest for Freddie and Fannie mortgage loans may not even pay for that payroll tax cut. The fee is hidden in the interest rate, and the money pours into the general coffers. Did the suckers, er citizens, really think there was a social security lock box? Who knows where Congress may spend that money. The important thing is they got their grubby hands on it.

Unfortunately for Americans, it comes from the people. And it doesn’t just come from “the rich.” It comes from the people the Democrats and Obama claim to want to help. Freddie and Fannie supposedly help people, who normally can’t afford a house, buy one. How does paying a few thousand extra help?

According to an out of touch Obama administration official, it’s “unlikely to negatively affect borrowers”. She claimed it’s so tiny the suckers, er people, won’t even notice it. She also claimed it will “help bring private capital back into the mortgage market, which [is] good for borrowers over the long-term.”

There are two flaws with that claim. The first is that the private capital is the borrowers’ capital. The second is that the money won’t go into the mortgage market, but rather into the hands of the spend happy federal government. Maybe they’ll hand it over to some bankrupt solar panel companies, or buy another failed auto maker. Or maybe President Obama can take a real vacation instead of a budget $4 million tax payer Christmas holiday in Hawaii.

There’s a sucker born every minute. It appears that they’re all Obama supporters. But they’ve dragged the rest of the people into Suckerville with them.

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