Long Island Residents Worry About Losing Deductions Under Proposed GOP Tax Plan
PORT WASHINGTON, N.Y. (CBSNewYork) – Suburbanites are sounding off about the House Republicans' sweeping tax overhaul plan.
The plan unveiled Thursday saves 401k but changes tax brackets and caps deductions, CBS2's Jennifer McLogan reported
"I am not sure this tax plan is better for a guy like me – a blue collar worker from New York," said Jason Bernfeld, a volunteer fire chief on Long Island. "I'm still stuck in the 25 percent bracket, losing write-offs."
Under the plan, homeowners would not be able to deduct state and local income taxes at all. Their property tax deductions would be capped at $10,000, and mortgage interest deductions for new home loans limited to $500,000 instead of the current $1 million.
"The bill is not good for the housing industry on Long Island," said Mitchell Pally, of the Long Island Builders Institute.
The National Association of Home Builders, which is often pro-Republican, says it cannot back the current GOP plan.
"Everybody along the chain gets impacted when homes are not built or homes cannot sell," Pally said.
"Taxes do keep rising," one resident said.
"Putting people in bad predicaments, as far as the economy goes," another added.
"Everybody wants a tax cut," one woman said.
"The middle class is the backbone of this country," a man added.
"We believe the great majority of Long Islanders will wind up paying more under this proposed tax plan, because of the elimination of the state and local tax deductions," said Kevin Law, of the Long Island Association, a pro-business group.
The New York State Association of Realtors predicts the young won't be able to achieve the American Dream of home buying and retirees selling their homes will see their nest eggs shrivel.
"This is going to affect home values. We expect home values to take at least a 10 percent decline in values," said Paul Llobell, of the Long Island Board of Realtors.
Some Republicans and Democratic homeowners told McLogan that while the overhaul may work in other parts of the country, they worry the 'tax cut plan' will become a tax increase here in the suburbs.
