One of the items of unfinished business remaining before this session is extending the payroll tax cut of last year that funds Social Security.
Congressman Tom McClintock addressed the House Tuesday on some elements of the Payroll Tax Deduction that he feels are being overlooked by both parties.
“To pay for an additional two months of tax relief under the senate version or twelve months under the house version, more than three thousand dollars will be imposed on every $150,000 mortgage backed by Fannie or Freddie. A family taking out a $250,000 mortgage will pay $5,000 more in taxes directly and solely because of this bill hidden in their future mortgage payments.”
The Congressman says it shifts the burden of this bill to future homebuyers, kicks the housing market when it’s already down and makes it that much more expensive for home buyers to reenter the market. and adds to the pressures that have chronically depressed everyone’s home values. McClintock says both the house and the senate versions of the Payroll Tax bill need to go back for major revision.