Real Estate Buyers to Pay for Payroll Tax Extension. The payroll tax cut extension affects all future home owners and real estate agents. Most of the public is unaware that Senate Democrats will raise loan guarantee fees 0.10 percentage points to fund the extension of payroll tax reductions. A remporary extension results in a PERMANENT fee increase. Business as usual in Washington. The increasingly vitriolic debate over whether or not to extend a payroll tax cut and jobless benefits for two months has dominated the news recently, but no one seems to be factoring in that the $33 billion-cost for the bill will actually be borne by United States homeowners, who are already struggling to make mortgage payments. While the Senate, the House of Representatives and the president lob accusations and demands back and forth across the aisle and across the capitol, there is little acknowledgement that even the unpopular two-month cut, which is nothing more than a stop-gap measure and, many argue, un-implementable anyway, is going to literally cost taxpayers a firtune over the years. Most members of the general population, regardless of party affiliation, are more concerned with the jobs creation issues associated with the bill and whether or not they are about to have another roughly $1,000 docked from their paychecks over the course of a year.
Even administrators working with the Troublesome Twins, Fannie Mae and Freddie Mac are not wholly on board with the plan. In fact, acting director of the Federal Housing Finance Agency (FHFA) Edward DeMarco has said that “relying on long-term revenue from [the GSEs] as an offset for short-term tax cuts seems inconsistent,” although he added that the “FHFA will implement whatever Congress directs. The two-month extension would be paid for over the next ten years in raised lending fees. More than one critic has pointed out that it is an uncertain plan at best to fund anything through entities that many in the government believe should be dissolved and whose future is, at best, uncertain.
More government slight of hand...except this time, it will directly affect future home owners. Amazing how a temporary reduction in payroll taxes willl result in permanent increase in fees. For a futire home owner, the additional fees will far more than outweigh the reducrion in payroll taxes. Future home owners lose in this victory.....
Paddy Deighan, Esq
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