What started as simple, quiet and private has exploded into complex, hectic and very public. An event-filled weekend that followed his swearing-in ceremony on Saturday catapulted Pat McCrory, North Carolina’s new governor, into an even busier week.
A statewide tour puts him in New Bern tonight for his only Eastern North Carolina stop and, after lighting in three other strategic locations later this week, McCrory will be ensconced again in Raleigh on Saturday for traditional ceremonies, including the governor’s inaugural address.
So far, we like McCrory’s energy. And we’re optimistic about his leadership. He hails from a small town — Jamestown — and moves from a mayor’s seat — Charlotte — into the governor’s chair. He’s not a seasoned Raleigh politician, and old issues will be viewed from a fresh perspective.
Like any governor, though, he’ll put forth some good ideas and some that should have stayed on the shelf.
According to the Charlotte Business Journal, for example, there have been discussions within the new administration and among Republican leaders in the General Assembly about the possibility of what is being called a transfer or conveyance tax on real estate transactions.
We hope such discussions are merely fleeting banter, but we can already hear the footsteps of the state Realtors association as it gathers to rally against such proposals. Only within the last few months has the struggling housing industry shown slight upticks toward recovery. We agree with the association’s position that these fees would likely deliver another reeling blow, not only to a crippled industry but to North Carolina’s economy in general. The housing industry’s work force employs nearly half a million, according to numbers cited in the Charlotte Business Journal’s article. And still far too many homeowners are either forced to walk away from their mortgages or take money to closings just to break even on their investments.
According to the National Association of Realtors, a new real estate tax, passed by Congress in 2010, is already in place, taking effect Jan. 1. It calls for a 3.8 percent tax on some investment income. Like all legislation, this piece is as clear as mud. Its intent is to generate an estimated $210 billion to help fund the new health care and Medicare overhaul plans. It will not be imposed on all real estate transactions, but is aimed at those with an adjusted income above $200,000 and couples filing a joint return with more than $250,000 of adjusted gross income.
In announcing his plans to take the oath of office last week, McCrory said he will “be sworn in Saturday and sworn at Monday.” He definitely got that right.
