Headlines today report of a discouraging new tax being levied on new purchase loans and refinances.
Here is a video from CBS:
This is what happens when government spends more than it generates in revenue. If they will tax mortgages, what else will they tax? Your auto loan? Your student loan?
The dark cloud that looms is that the Feds have now created a dependency on Federally backed financing to help generate tax revenue. That can create all kinds of mischief, including an incentive to increase government's involvement in its already near-monopoly in residential lending. However, there is a silver lining. If the taxes increase to a substantial level, it may be an incentive for private lenders to step in and provide a more affordable option to borrowers.
The best policy decision would be to get the government out of the mortgage and housing business.
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4 comments:
terrible, one more thing to be cautious about with our government.
Keep in mind the tax payers are backing these institutions; so collecting a fee and generating revenue from them I think is ok. I do not see where taxing a debt is a bad thing. I would rather tax debt and allow savings to be left alone.
You tax what you do not want and free up what you do. If Americans where out of debt and had savings we would not have had the latest depression/recession.
I think its a great plan. This lady that claims it will cost her $9,500 is dreaming. She will not keep the loan for 360 payments. Average she will keep it for 5 years.
Taxes should be balanced and appropriate. Placing taxes on wrong place will bring negative repercussions.
income tax Montreal
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