Karl Denninger, "Boehner: Let's Just Lie Some More"

"Boehner: Let's Just Lie Some More"
by Karl Denninger

"Aw, Boehner has his panties in a wad! "House Speaker John Boehner said he and fellow House Republicans oppose Senate legislation to extend through February a payroll tax cut and long-term unemployment benefits and will push to continue the measures through 2012. Congress should “stop, do our work and extend for one year,” Boehner said on NBC’s “Meet the Press” today. He said a two-month addition creates uncertainty for employers as they budget for 2012. A “reasonable, responsible” compromise could be reached, he said, and suggested a formal conference committee between the House and the Senate to resolve differences between the two chambers."

What work is that John?

In all sobriety, you do realize how The Senate proposes to pay for this tax reduction, right?  They have added to Fannie and Freddie a fee increase.  That's right - those very "middle class tax cuts" will be paid for by people  in the middle class who buy or refinance houses.  See, the rich don't buy small houses, they tend to buy big houses - ones that don't qualify for Fannie and Freddie financing.  And the poor don't buy houses at all.

So this little game amounts to nothing more than sticking of the hand in one pocket and moving a $20 to the other.  Wow man, you got a tax cut!  (Just so long as you don't notice that we robbed you of the same money at the same time!)

It's worse, of course.  The Fannie and Freddie surcharge doesn't sunset when the tax does.  In fact, it doesn't sunset at all.  So in addition to taxing you to give it back (a worthless exercise) the Senate is further cementing these two broken GSEs into the Federal Government policy system and is creating a forward slush fund that I'm sure they'll find some use for down the road. Isn't that special?  I knew you'd like it."

- http://market-ticker.org/

Share this post