When Tax Break Turns Into A Tax Increase

For those of you who don't know, the Guarantee Fee will be going up by 10 basis points soon.  How you ask?  Here's a clip from the story posted by California Association Of Realtors...

• The guarantee fee will rise 10 basis points on April 1; the increase was included in the two-month extension of the payroll tax reduction last December.  A basis point is equal to one one-hundredth of 1 percent, or 0.01 percent.

So to simplify....  The increase was tied to the payroll tax deduction extension.

Which means.... When the payroll tax deduction goes away... we'll have the higher payroll tax AND RETAIN THE BASIS INCREASE IN THE GUARANTEE FEE.

Don't you love how the govt administration can raise your taxes even while they're telling you they're lowering them?