Just before Christmas, by unanimous consent in a virtually deserted chamber, the House of Representatives approved a bill previously passed by the Senate allowing for a two-month extension of the existing payroll tax reduction and the extension of unemployment benefits.
Within minutes after the “vote” our media hungry congressman, Rep. Peter King, R-Seaford, could be heard on radio saying what a wonderful thing the House had done for working Americans.
This is the same Peter King who a few weeks ago voted against the jobs bill proposed by President Obama which would have also extended the payroll tax cut and unemployment benefits. Back then, King’s rationale was that the bill’s cost would only add to the deficit. In fact, the cost of the bill would have been fully paid for by a tax on high earners.
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But wait, there’s more. The bill just passed has an estimated cost of $33 billion but with no definite offsetting revenue source. The bill’s cost is “expected” to be paid via increased fees assessed against our two giant and insolvent government sponsored entities, Fannie Mae and Freddie Mac. Unfortunately, it is expected that these entities will pass the fees along to future homebuyers thus raising the cost of a $210,000 mortgage by approximately $15 per month.
So congratulations to the Congress and Rep. King for finding a nonexistent constituency, i.e. future homebuyers to tax and for again managing to be on both sides of an issue while claiming victory.
