Saturday, December 17, 2011

Obama Wants to Extend Payroll Tax Cut for Year

Here we go. Just as the Senate passes a WHOLE TWO MONTHS  extension to the payroll tax cut, the politics begin!   The President says "Extend it for a year!"

Obama wants payroll tax extended for entire year
Published on Business | shared via feedly mobile

President Barack Obama, rebuffed by Congress on a yearlong extension of a Social Security payroll tax cut, said Saturday that it would be "inexcusable" for lawmakers not to lengthen the short-term deal when they return from their holiday break.

I'm all for extending it indefinitely.  Money in our pockets that we can then invest provides a much better return than Social Security,

But did you see the sneaky tax hike that comes with this?  It's a permanent "fee increase" in Fannie and Freddie mortgages.  The amount is $180 a year for a $200,000 mortgage and $360 a year for $400,000 mortgage.  It applies for all new mortgages and refinanced mortgages.

For your convenience, it will automatically be included in your monthly payment.


And this is permanent.  So when the temporary payroll tax cut expires, in 2-months or by December 2012, the fee continues for the length of your mortgage!

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