In yet another diatribe over at NC Policy Watch, Chris Fitzsimon continues his crusade to see to it that the government gets its hands on more of your money – this time you should be punished for selling your house via a transfer tax.
He attempts to discount part of the Realtors argument against the transfer tax: that the added expense of selling a home will slow home sales. According to Fitzsimon:
"the Realtors arguments simply don’t add up…seven counties in the state already have the right to impose the transfer tax, authority given to them in the 1980s by the General Assembly. One of them is Pasquotank County. County Manager Randy Keaton tells the N &O that the transfer tax has not slowed growth in his area at all. The county is one of the 20 fastest growing in the state."
Apparently, Fitzsimon and Keaton share the same crystal ball. If they come to the assumption that "the transfer tax has not slowed growth" at all, that means they must have some magical powers enabling them to know exactly what growth would have been without the transfer tax.
A timeless economic law is that when a certain behavior gets more expensive (in this case, selling a home) then there will be less of that behavior. Just because you don’t like it, you can not just wish away this economic law because it’s convenient to your argument.
Besides, Pasquotank County should be experiencing rapid growth…it’s on the ocean! Of course, when your county contains such a scarce resource as oceanfront property, the demand will rise rapidly. Not to mention the steady influx of military retirees from nearby naval bases flush with cash and looking to buy a place near the beach.
What really doesn’t add up is why Fitzsimon thinks he needs to use such an obviously misleading example in his argument.