Statement Rep Allen West “Homebuyers will Pay for Payroll Tax Deal”

(WASHINGTON)— Congressman Allen West (R-FL) released this statement today after voting no on the extension of the Payroll Tax Cut:

“Americans are exhausted, out of work and many have simply lost hope in the political system. They have been struggling now with nearly five consecutive years of record job stagnation, increased foreclosure rates and an economy that continues to struggle.

All of these reasons are why I cannot in good faith vote for this payroll tax cut deal. It is not that I don’t believe Americans should have relief in their paychecks or be afforded a safety net of unemployment insurance, it is because, unlike some on Capitol Hill, I am looking beyond this election cycle.

I am looking at the ramifications of adding billions of American taxpayer’s dollars to a trillion dollar deficit with no answers as to how or when we will pay for this bill.

I am looking beyond immediate gratification and instead looking at an American political system willing to cave to political pressure to give Americans a temporary Band-Aid that in the long run only makes things worse for their future.

The facts are simple.  This supposed payroll tax decrease is really a backdoor tax increase on homeowners and first time homebuyers. The deal is being paid for by added fees on FHA- backed loans. Homeowners with FHA- backed mortgages represent more than one-third of mortgages in the United States. Those Middle Class Americans will be footing the bill for this political gimmick.

Homebuyers with a $200,000 standard 30- year loan will have to pay an extra $10,000 over the course of their loan. It would take roughly 250 paychecks with $40 extra from the payroll tax holiday to pay for the added increase to the life of an FHA-backed mortgage loan. That represents ten years of consecutive employment.

In addition, some may argue the payroll tax deal will not affect Social Security. This could not be further from the truth. The federal government’s general operating account will be used to compensate for the lost revenue in the Social Security Trust Fund, which will increase the deficit and add to the nation’s debt.

My position on the Payroll Tax Extension has not changed. In December of 2011, I supported a responsible one- year extension that was fully paid for, and would have put money back in the pockets of American workers while protecting homeowners, Social Security, and not adding to the deficit and our ever-increasing national debt.

This current deal is not good policy – but it is political posturing.

The payroll tax cut deal is a result of politicians telling Americans what they want to hear, while seriously harming them and our nation in the long run. Americans sent a new wave of leaders to Capitol Hill in 2010 to stand up for conservative principles and turn this country around. I will continue to be a voice for those Americans.”

*Please see this CBS News Special Investigation on the “real way” the payroll tax deal is being paid for.

Rep Allen West writes: Two-month extension deal more about politics than policy leadership

January 03, 2012

By Allen B. West

In November 2010, I was elected to represent the constituents of Florida’s 22nd Congressional District. Along with others of my Freshman class, I was sent to Capitol Hill on the wave of discontent sweeping our nation regarding the failure of those in our Nation’s Capital to adhere to our constitutional principles. I was sent to address our inability to rein in wasteful spending, spiraling debt and deficit, and provide the courage to tackle the critical reforms that must be made to protect and preserve Medicare and Social Security.

In January 2011, I again reaffirmed the oath I took 22 years ago as a young Second Lieutenant in the United States Army to support and defend our Constitution and this nation, and the standards I carried onto this battlefield of ideas were the same that I have always carried: conviction, character, integrity and a patriotic love for this country.

Unfortunately, there are not many in Washington, D.C. who carry those standards, as the events of the last few days of 2011 have demonstrated.

I stand with my fellow Americans who are disgusted and disappointed by the absurd political machinations we have just witnessed with the passage of this ludicrous two-month extension of the payroll tax cut, unemployment benefits and sustained growth rate (SGR) for Medicare providers.

How anyone can attempt to defend this decision as the proper and intelligent way to implement policy is beyond me. However, this decision exposes a far great systemic problem on Capitol Hill, and indeed America.

Along with the United States Senate’s inability to pass a budget in nearly 1,000 days — forcing the passage of numerous Continuing Resolutions simply to keep the Federal Government sputtering along —  not to mention the refusal of Senate Majority Leader Harry Reid to consider the nearly 30 bills already passed by the House of Representatives designed to stimulate jobs and economic growth, this two-month extension, and the ridiculous dance carried out by the negotiators, exposes clearly the political dysfunction paralyzing our country.

Furthermore, this political dysfunction is representative of a societal dysfunction enhanced by manipulative demagoguery promoted by a complicit media.

The United States of America is at a critical crossroads in its young history. We are facing enormous challenges both within and without.

PLEASE FINISH THE ARTICLE BY CLICKING HERE: SUN SENTINEL

House Version of Payroll Tax Bill A Better Deal for America versus Senate – Check out the comparison


Under the House-passed payroll tax cut bill, an American worker earning $50,000 next year is 100 percent certain to receive a $1,000 payroll tax cut.  By comparison, the legislation passed by the Senate on Saturday would grant only a $167 payroll tax cut to the same worker.  Despite Senate Democrats’ insistence that they will work to extend the payroll tax cut beyond February of next year, there is no guarantee that they will make good on their word.  As recent history shows, Senate Democrats don’t exactly have a stellar record of acting on job-creating measures. 

ALL INFORMATION OBTAINED FROM: Ways and Means Republican Press Office www.Republicans.WaysandMeans.House.Gov  202.226.4774

The Utter Lunacy Of Obamanomics – The Right Sphere

Okay, get this. The Obama administration wants to extend the payroll tax “cuts” that were part of the failed stimulus package from 2009. If you don’t know what they are it’s because they were literally so small no one really noticed. A little less was taken out of your paycheck every couple of weeks than normal for a couple of years. The only real impact of this “tax cut” was that Social Security was underfunded so we’ll have to deal with an even bigger mess later on.

But here’s the best (read “crazy”) part: The Obama administration is arguing that letting these puny “tax cuts” expire will be a drag on the economy. That’s right, they’re arguing that a tax hike (which is what would happen if the cuts expire) will hurt the economy. Okay? With me so far? They’re arguing for tax cuts… which most people didn’t even notice. So you can imagine that there was really no major economic uplift realized from the cuts. Okay, no need to imagine it – we’re living it. The economy sucks right now.

Ineffective tax cuts are ineffective. Now, instead of realizing that maybe more needs to be done – like broader tax reform – the Obama administration is proposing we extend the ineffective payroll tax cuts and – wait for it – hike taxes on “the 1%” (which is really anyone who makes more $250,000)  to offset the shortage of funding for Social Security. You know, because that won’t hurt the economy, guys.

I mean really, how stupid can you get? You offset tax cuts with tax hikes elsewhere? And, on top of that, you raise taxes on the people who create the jobs for the people whose payroll taxes you’re cutting? Hello? Is ANYONE home?

COMPLETE THE REST OF THE STORY BY CLICKING HERE: The Right Sphere