Home loan forgiven? It may count as income

The debate in the N.C. Senate Wednesday was on what's been called the "gas tax bill." Whether it cuts the tax (as Republicans say) or raises it (as Democrats say) depends on how you look at it. But another part of the bill appears to be more clear. It's one that could affect thousands of N.C. homeowners.

A section of the bill dealing with income tax changes would require taxpayers to count as income any portion of their mortgage indebtedness forgiven by a lender.

Take somebody who owed $200,000 on a home and had been caught up in the mortgage meltdown. Say the lender forgave $50,000 of the loan. Under the bill, that $50,000 would be counted as taxable income in North Carolina. The Internal Revenue Service would not count it.

Democratic Sen. Joel Ford of Charlotte tried to remove it from the bill, and leave state law conform to federal law.
   

"We should provide the same tax relief to North Carolina taxpayers and put more money in pockets," he said. "Not conforming to the federal law on this amounts to kicking a person when they're down.”

 

For procedural reasons, Ford's proposed amendment never came up for a vote.

 

Democrats say up to 4,000 people could be affected. Legislative staffers estimate the change would result in $14 million in revenue for the state.

 

The Senate tentatively passed the bill 36-14 along part lines. Final approval is expected Thursday before it would head to the House.

 

Republicans say the gas tax bill, by the way, would ensure money for road building and maintenance. By setting a floor for the tax (35-cents a gallon) it would result in another $352 million for roads over five years.    

 

Black caucus endorsement a 'coup' for Roberts?

A few months ago, in the heat of the Nick Mackey controversy, some black Democrats vowed to punish Mecklenburg commissioners chairman Jennifer Roberts at the polls.

Roberts, after party activists chose Mackey as sheriff in a disputed -- and later overturned -- party election, was among those who voted to make his erstwhile rival Chipp Bailey sheriff. "There will be some awfully angry African Americans in this community," predicted one black Democrat.

But at Sunday night's closed Black Political Caucus meeting, Roberts ended up with one of the group's three endorsements for at-large seats. Democratic Party chair Joel Ford said this morning that there was spirited debate. One of the people pushing the endorsement of Roberts and Dan Murrey, both white Democrats, was Harold Cogdell, the only black at-large Democrat.

"By joining with all three and by unifying the ticket .... it's a no-brainer, it's a slam dunk," said Ford. "It's the dream team."

Without strong African American support for Roberts, or for that matter Murrey, both could lose. It also would threaten continued Democratic control of the county board.

Republican commissioner Dan Ramirez wasn't impressed by the caucus vote. Virtually every candidate endorsed is a Democrat.

"They lost all credibility as a caucus," he said. They should call themselves the black Democratic caucus."

Meck Dems: Filling a vacancy and looking for a clarification

Six months after state Rep. Pete Cunningham resigned, Mecklenburg County Democrats are finally ready to nominate a successor to the longtime Charlotte lawmaker.

Democrats are scheduled to meet May 28 to nominate Kelly Alexander Jr. for the seat. Alexander won the May 6 primary over Mary Richardson. He faces Republican Gary Hardee in November, but the district is overwhelmingly Democratic.

Once recommended by his district's party executive committee, Alexander has to be appointed by Gov. Mike Easley. That's considered a formality.

Alexander would join a House already in progress. Its so-called short session started last week. But he isn't waiting. He'll meet with House Speaker Joe Hackney in Raleigh in Tuesday. He doesn't want to lose any more time.

"The train," he says, "has already pulled out of the station."

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Party chairman Joel Ford says he expects Sen. Dan Clodfelter may also use the occasion of the May 28 meeting to clarify remarks he made in an email.

With a subject line that said "Disaffilate me," Clodfelter took issue with state party chairman Jerry Meek's endorsement of Barack Obama a day after Obama swept the N.C. primary.

"I do not wish to be associated with the party in consequence of this endorsement," Clodfelter wrote. He said later he was frustrated with email blasts from the party and piqued by Meek's endorsement. Clodfelter is a Hillary Clinton supporter.

Ford said he hopes Clodfelter clarifies his comments.

"People did take it as anti-Obama," he said.