Informative post in The Wall Street Journal about how House Republicans, Senate Democrats, and the Obama Administration are proposing to pay for the extension of the reduction in payroll taxes. The parties are exploring increasing fees that Fannie Mae and Freddie Mac assess lenders when lenders sell their mortgages to Freddie and Fannie.
Payroll taxes are used to pay for items such as social security and unemployment compensation insurance premiums.
At first blush, you have to ask yourself why would Congress and the White House want to continuously risk underfunding social security and unemployment compensation insurance by basically reducing the premiums paid for these programs?
Second, why increase the fees to lenders and not use the increased fees to offset costs for operating Fannie and Freddie?
I hate to use the phrase shell game, but this is simply what this policy boils down to. Breaking and entering at Fannie and Freddie in order to fund a drug fix. This time the drug fix is unfunded expectations.
In addition, how does this policy create jobs and put our resources to work?