How the GOP tax plan could affect a Long Island household

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Experts say the Republican tax overhaul plan could mean many Long Islanders will pay thousands of dollars more.

"You're going to find virtually every Long Islander who owns a home and has deducted property taxes is going to be adversely impacted by this," says economic analyst Martin Cantor.

Take, for example, a household with a total income of $80,000 that pays $12,000 in property taxes and another $3,000 in state income taxes. Currently, both the property taxes and the state taxes are deductible, so the family's taxable income is $65,000.

Under the new rules, the family would only be allowed to deduct a maximum of $10,000. Their taxable income becomes $70,000.

Tax experts say the difference would mean that household would have to give approximately $1,000 more to the IRS.

More: Tax Plan Disappoints Long Islanders

And the impact could prove to be a double whammy for Long Island homeowners: if property taxes are no longer fully deductible, buyers may think twice about purchasing a home in high-taxed areas like Nassau and Suffolk, driving down values.

Rep. Peter King (R-Seaford) warns that home values could be impacted significantly. "Most economists I've talked to expect the value of your home to go down 10 or 20 percent," says King. "For so many Long Islanders, their home is their asset -- that is their main asset. And now that's going to decrease 10 or 20 percent."

For Art Kemp, a retired music teacher, it may all prove to be too much. He's lived in his beloved Syosset home for more than 50 years, but he and his wife have seen their property tax bill climb to $18,000 and now he's concerned about the prospect of not being able to deduct all of those taxes.

"I said to myself, 'They can't pass this, because they'll be up in limbo themselves.' But they had the chutzpah to pass it," Kent says of Congress. He says the tax overhaul plan could be what makes him leave his home.

If the House and Senate agree on the tax reform plan, and President Donald Trump signs it, the changes won't take effect until next year.

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