Homeowners concerned GOP tax plan could crush LI housing market, economy

Posted: Updated:
HUNTINGTON -

As a conference committee irons out the differences between the Senate and the House versions of the tax bill, some are concerned that the GOP plan could drastically lower the value of most Long Islanders' biggest asset - their homes.

Gary Gardner, of Centerport, says he's really worried about what will happen when the new tax law takes effect. As News 12 has reported, some deductions popular with Long Island homeowners would be capped or eliminated. 

“And for folks like my mom who rely on these deductions to get by, they're not going to be able to get by anymore,” says Gardner.

Experts also worry that the plan could have an impact on the local economy.

“Most Long Islanders are house rich and cash poor. If their homes are worth less than what they paid or if they think their house is worth less, they tend to spend less,” says Kevin Law, of the Long Island Association.

Rep. Peter King says most economists he spoke with believe Long Island home values would fall 10 to 20 percent.

Homeowners who plan on retiring in the not so distant future say any decrease in home values will have a significant impact on their ability to pay for their retirement.

Port Jefferson's Karen Austin is a bookkeeper who says she was hoping to retire in five years, sell her home and use the money to buy a condo. She now says she might have to rethink her retirement plans if she can’t sell her home.

Congressional lawmakers have a short timeline to iron out the differences between the House and Senate versions of the bill. Their goal is to have a compromise to President Donald Trump before Christmas. 

  • SlideshowsSlideshowsMore>>

  • Your February Snow Photos

    Your February Snow Photos

    Sunday, February 18 2018 10:54 AM EST2018-02-18 15:54:26 GMT
    Your February Snow PhotosYour February Snow Photos

    Did you snap a great pic of the snow from the overnight storm? Share with us here, or use the hashtag #LIWeather on Twitter and Instagram.

    Did you snap a great pic of the snow from the overnight storm? Share with us here, or use the hashtag #LIWeather on Twitter and Instagram.

  • Your Long Island Weather Photos

    Your Long Island Weather Photos

    Meiko at the fire island lighthouseMeiko at the fire island lighthouse

    Share your weather photos with us on Twitter and Instagram using the hashtag #LIWeather.

    Share your weather photos with us on Twitter and Instagram using the hashtag #LIWeather.

  • 2018 Westminster Kennel Club Dog Show

    2018 Westminster Kennel Club Dog Show

    2018 Westminster Kennel Club Dog Show2018 Westminster Kennel Club Dog Show

    Photos from the 2018 Westminster Kennel Club Dog Show. Images via Getty.

    Photos from the 2018 Westminster Kennel Club Dog Show. Images via Getty.

sorry to interrupt
your first 20 are free
Access to News 12 is free for Optimum, Comcast®, Time Warner® and Service ElectricSM customers.
Please enjoy 20 complimentary views of articles, photos, and videos during the next 30 days.
you have reached your 20 view limit
Access to News 12 is free for Optimum, Comcast®, Time Warner® and Service ElectricSM customers.
Please login or create an account to continue enjoying News12.
Our sign-up page is undergoing maintenance and is not currently available. However, you will be given direct access to news12.com while we complete our upgrade.
When we are back up and running you will be prompted at that time to complete your sign in. Until then, enjoy the local news, weather, traffic and more that's "as local as local news gets."