Monday Must Read: The Hidden Tax in the Payroll “Tax Cut” Extension | Verum Serum

This is just lovely. Remember that 2-month payroll tax extension that Republican agreed to around New Year’s Eve? Turns out there was a little surprise hidden in that bill:

The new fee is a minimum of one-tenth of 1 percent on Fannie Mae- and Freddie Mac-backed loans, and is likely to go much higher.

It will be imposed for the next 10 years on most mortgages and refinancings and it lasts for the life of the loan…

It’s bad news for Patty Anderson, who’s buying a home in Virginia. Anderson will save a couple hundred dollars from having her payroll tax cut extended but her mortgage broker told her the new fee would cost her almost $9,500.

Perhaps if the payroll tax cut is extended beyond two months she might save more than a couple hundred, but no one believes the cut can be extended for 30 years or even five. Bottom line is that Democrats in Congress (who pushed for this bill) have once again given Americans a big public handout with lots of shouting about what it will do for the economy while simultaneously slipping a much bigger tax in unnoticed. And what did Republicans do about this $10K tax on buying a new home? Nada.

Now, which other “rock-ribbed GOP conservatives” voted for this massive increase in the costs of buying a home?

We need to boot them, too.