Amusing claims

Tim Minton's July 5 Point of View piece against a 1 percent transfer tax has some hilarious contradictions and omissions.

Minton, executive vice president of the Home Builders Association of Raleigh-Wake County, claims his organization is opposed to real estate fees, but the Homebuilders never question Realtors' 6 percent commission. Spending $75,000 on TV ads to support the Realtors' $500,000 campaign proves where their allegiance lies (not with homeowners).

Minton claims sellers will pay the tax, but in the next paragraph claims that buyers will pay the tax. He claims some buyers will pay more in tax than a down payment. Buyers who barely afford a 1 percent down payment will struggle with subsequent costs of ownership. (And how can a first-time homebuyer be selling a house before owning one?)

Minton suggests it is a tax on residential property. It is a tax on all real property including land and commercial properties (whose revenues subsidize public services in new residential areas).

The transfer tax is less volatile than sales tax and generates revenue during economic growth when needed most for capital investments. Homebuilders' and Realtors' "nonsolution" would raise existing sales taxes and property taxes on all current residents including those on fixed incomes.

Greg Flynn

Raleigh