Congressional leaders have agreed to extend the payroll tax cut without tapping home owners’ wallets to pay for the $93.2 billion measure.
A two-month extension of the tax cut that passed in December of 2011 was partially funded from an increase in home loan fees charged for loans that come through Fannie Mae or Freddie Mac’s mortgage programs.
Members of THE NATIONAL ASSOCIATION OF REALTORS® sent thousands of emails earlier this week to members of Congress asking them not to charge middle-class home owners for the payroll tax cut.
Legislators had considered raising Fannie Mae and Freddie Mac fees again, but instead opted for a combination of spending cuts and revenue-raising measures. The agreement will cut the payroll tax by 2% through the end of 2012, saving the typical taxpayer about $20 a week.
President Obama said he will sign the bill once Congress passes it.