Punch Payroll Tax Here / Push Mortgage Tax There

Once again the old adage robbing Peter to pay Paul is rearing its ugly head in American fiscal policy. In the quintessential example of government "planning" gone amuck, the government extension of the payroll tax holiday for another month or for a year, depending on which politico is pontificating, is being paid by a $15.00/month tax on new mortgages backed by everybody's favorite Fannie Mae and/or Freddie Mac. And that's 90% of all mortgages currently being issued in the United States. Barack Obama has done a good job of making sure the private mortgage market is dead. 

Here's the skinny. As you have heard, 48% of all wage earners pay no income tax. It's tough to give a tax reduction to those who pay no taxes. However everybody pays a "payroll" tax which funds social security. As part of Obama's stimulus package, the payroll tax, although Social Security is going broke, was reduced from 6.2% to 4.2%. Unless Congress acts, the payroll tax will go back up to 6.2% January 1. The Senate bill extends the cut until February 28, 2012.

This effort is opposed by the House which wants to extend the payroll tax deduction for a full year, and the Republicans in both the House and the Senate have mixed in the construction of the Keystone Pipeline from Canada to Houston for good measure. This was done in an attempt to back Barack to the wall to approve the pipeline, a shovel ready project that would create a minimum of 20,000 jobs and help assure North American energy independence, that so far he has refused to approve placating the global warming environmental whacko bunch.

Notwithstanding, the payroll tax reduction needs to be paid for. Although the payroll tax reduction is temporary, Congress has decided to pay for it with a $15.00/month permanent tax on new home mortgages. Isn't that special? And you thought Super President promised not to raise taxes on the middle class. Of course, he can say he really isn't raising taxes since no new mortgages are being issued anyway. Who knew?

This is pitiful. If you want to know why this country is going down the toilet, look at the policy these jack asses are implementing. You can poke it, shake it, reshape it, bend it, and squeeze it....but at the end of the day.... when dealing with these kinds of temporary fixes to the economy, you are always robbing Peter to pay Paul.

And don't forget to go and borrow money to buy a house to make sure you pay your fair share with that new $15.00/month tax!!!