All was not happy news for either side of the aisle, or the White House, as Congress could only agree to extend the payroll tax cut for 2 months. As Senators scrambled to get home after the vote the President said “It would be inexcusable for Congress not to further extend this middle class tax cut for the rest of the year”. Economist say it would be unwise not the extend to cuts through year considering the U.S. slow recovering economy and the current European debt crisis.

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The bill now returns to the House as they must address the 2 month extension. A House Republican aide said members were “overwhelmingly disappointed in the Senate’s decision to just kick the can down the road for two months.”  Congressmen spoke by telephone with some members and a few options were discussed. Those include accepting the Senate bill or amending it and sending it back to the Senate.

The bad news extends further to new or refinancing homeowners as they will foot the bill for the tax cut.  New fees attached to mortgages backed by Fannie Mae, Freddie Mac and the Federal Housing Administration will cover the cost. Fox News reported ” the mortgage fee provision would have widespread long-term impact, considering nine out of 10 mortgages go through one of the three government-sponsored finance organizations affected. The new fee increase would amount to about $15 a month more for a $200,000 mortgage, according to a senior Democratic official.  That’s $180 a year, or $360 a year for a $400,000 mortgage. Homeowners would have the fee hike built into their loan — the mortgage provider would then send that extra revenue to the Treasury.

The 1,200-page bill funds day-to-day operations of hundreds of government programs across 10 Cabinet agencies and sets the budgets for Education, Treasury, State, Health and Human Services, Homeland Security and Labor, among other agencies.