We now know when Obama and his accomplices in the senate insisted on the two month extension to the payroll tax, rather than the house plan for extending the cuts for the entire year. It seems the democrats came up with a way to raise much more money on the backs of the middle class. The Republicans also share in the blame, by not reading what they were voting on.
They added a surcharge on all Fannie and Freddie backed mortgage loans taken out over the next 10 years. And since the FM twins back about half of all mortgages, you have a 1 in 2 chance of getting burned. On a 200,000 dollar mortgage the 1/10th of 1% surcharge will cost you 15 bucks a month. So in exchange for the 180 dollars you will save on your payroll taxes, Obama will charge you $5400.00. Hell, I’ll give you 500 and you only need to give me back 3 grand. Do we have a deal?
Not only that, but the revenue doesn’t go to pay off the money lost to Social Security and Medicare. It goes directly into general fund, where it can be spent any way Obama and his Marxist pals decide to. And even though the surcharge is paying for an extension covering just 2 months, the surcharge will be added to every FM backed loan for the next 10 years.
This is the 23rd new tax Obama has imposed on the middle class. In addition, Obama plans to lay claim on 61 billion from banks who will need to pass the cost to you and so will the oil and gas companies who will be paying higher taxes.
So much for hope and change. Hope is a fleeting thing and change is not always good. Let me refer to General george Washington at Valley Forge. One day he was addressing the troops and said “I have good news and bad news. The good news is you all get to change your underwear. The bad news is……………you change with you…………..you change with you…………………you change with you…………………………….
If we had passed the Fairtax this conversation would never have happened. The Fairtax eliminates the payroll tax (Medicare Tax & Social Security Tax), the most regressive tax we have, and all taxes on income. Just think how much more money you would have each month. The Fairtax taxes wealth not income. By taxing consumption you are taxing everyone not just those who make the economy grow. While the Prebate that is given to every legal household at the beginning of every month to ensure that nobody pays taxes on the necessities of life (food, housing, clothing) up to poverty level spending. New goods and services are taxed once at the retail level and used goods are not taxed. It is revenue neutral which means that it will take in the same amount of revenue as the Income Tax. I know that most of us don’t like to hear that the government is taking in all that money but with the Fairtax everybody will known exactly how much they are paying the government, just look at the bottom of your sales receipt for all New goods and services. No hidden taxes, No embedded taxes, No Value added taxes (VAT). When the government raises taxes everybody will see the increase immediately the first time they buy New goods or services.