Jacobs & Nassau lawmakers, REALTORS, homeowners
call on White House to reject tax panel’s proposal to reduce home mortgage deduction

Nassau County Majority Democrats, led by Presiding Officer Judy Jacobs (D-Woodbury), joined today with representatives of the Long Island Board of REALTORS (LIBOR), the Long Island Progressive Coalition and several Nassau County homeowners to rally against a Presidential Panel’s proposed tax reforms that will devastate current tax benefits for homeowners. The Nassau County Legislators, including Kevan Abrahams (D-Hempstead), Deputy Presiding Officer Roger Corbin (D-Westbury), Joseph Scannell (D-Baldwin), Jeff Toback (D-Oceanside), Lisanne Altmann (D-Great Neck), Craig Johnson (D-Port Washington), Dave Denenberg (D-Merrick), Diane Yatauro (D-Glen Cove) and Dave Mejias (D-North Massapequa), all called upon federal representatives in Washington to block this proposed plan.

A Presidential Advisory panel recently recommended reducing deductions for mortgage interest and eliminating those for state and local taxes. The tax overhaul is at the top of President George Bush’s second term agenda.

“Cutting the current tax benefits would wreak havoc on Nassau County homeowners, their budgets and their retirement savings,” said Legislator Jacobs.

LIBOR President Marian Fraker-Gutin said, “The housing industry, which has driven and sustained the economy for the last five years, could be seriously impacted by the proposed tax reforms. By reducing the deduction on mortgage interest and property taxes, as well as state and local taxes, the financial stability of many Long Island families could be grossly compromised. Moreover, consumers’ nest eggs will be jeopardized because much of their investment for retirement is tied to the equity consumers have in their homes.”

“Just like the presidents tax cuts which benefited the wealthiest Americans, this plan will cost more for the middle class while further reducing taxes for the wealthiest,” stated Lisa Tyson, Director of the Long Island Progressive Coalition. “This will erode the progressivity of the federal income tax while hurting many Long Islanders and deepen the affordable housing crisis”

In letters to U.S. Senator Hillary Clinton, U.S. Senator Charles Schumer, Congressman Gary Ackerman, Congressman Tim Bishop, Congresswoman Carolyn McCarthy and Congressman Steve Israel, the Nassau lawmakers commended the federal representatives for the tough stance they have already taken against the President’s proposed tax reforms.

“Limiting the mortgage interest deduction for homes under $300,000 when the average house in Nassau County is worth $485,000 puts the dream of homeownership that much farther out of reach for Long Island families,” said Deputy Presiding Officer Corbin.

Currently, an interest payment on up to one million of first mortgage debt is deductible. According to published reports, the panel is considering recommending that the figure be lowered to $300,000. The median price of homes is $485,000 in Nassau County and in Suffolk County it is $390,000.