FreedomWorks Opposes New Mortgage Tax in Senate Housing Bill

Business Wire, May 20, 2008

Senate Committee "Compromise" Raises Taxes by $500 Million on Most American Mortgages

WASHINGTON -- Americans will soon find that getting a mortgage is more expensive, thanks to housing legislation pending in the U.S. Senate. That's because the bill raises taxes by a stunning $500 million a year on the businesses that insure or purchase more than 80 percent of America's mortgages.

The tax increase is part of broader housing legislation that will provide $300 billion in new taxpayer loans through the FHA. The new program allows banks to cherry-pick the worst loans in their portfolio and roll them over 100 percent to U.S. taxpayers.

FreedomWorks Chairman Dick Armey commented:

"Only in Washington, DC would some people think that raising taxes on mortgages is the answer to a mortgage crisis. A permanent new levy on the GSEs that diverts resources to government programs will increase the cost of obtaining mortgage financing."

"This new mortgage tax will hit most Americans trying to obtain a home loan. It is unfair and counterproductive to raise taxes in order to create new government programs that largely reward imprudent lenders and speculators."

"There is little reform in the Senate compromise. FreedomWorks opposes the mortgage tax increase and the mortgage bailout and will work to defeat this legislation."