The U.S. Senate passed a budget bill and President Obama praised it but it was a horrible bill because it imposes a new tax even worse than imposing a higher tax on the so-called millionaires. This tax will hit the middle class hard, despit what the Congress and Obama says.
From the Las Vegas Sun: What the party leaders finally shook hands on is a measure that may surprise some Nevadans.
The bill establishes a new mortgage insurance fee, equivalent to about $15 extra per month for every $200,000 of mortgage a homeowner qualifies for — or $180 per year per $200,000 of new mortgage — to all loans originating with government lenders. It marginally raises the cost of home-buying in Nevada, where the recession and mortgage crisis have left many neighborhoods half empty.
http://www.lasvegassun.com/news/2011/dec/17/senate-votes-extend-payroll-tax-cuts-and-unemploym/
And where will the money go? The new mortgage fee will be applied to all loans originating with the Federal Housing Administration for 10 years, and with Fannie Mae or Freddie Mac permanently. New homeowners and those who refinance would pay the extra insurance charge to the banks, but for the next 10 years the funds would transferred directly to the U.S. Treasury Department to offset the two-month long payroll tax and unemployment insurance extension.
$180 a year is taken out of the U.S. economy per mortgage and for what? So the money can be be transferred to the U.S. Treasury where the money can be used for anything. Anybody who believes money this will pay for the tax cuts is delusional. This money is just new money that the politicians and bureaucrats will spend. And since this is a new tax, what will stop the politicians from increasing the amount taxed?
So, to the Democrats and Republicans in the Senate that voted for this bill, you really suck for passing this provision. And Obama, well you know, we already know that he is a pile of you know what.
And to the GOP membes in the House, and especially to Joe Heck, I really hope you will take this provision out of the bill.
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