Assembly Democratic Majority Speaker just spoke briefly with reporters after a caucusing with his conference in the Capitol and he reiterated some of the concerns voiced by other New York Democrats, including Gov. Andrew Cuomo, about the impact the GOP’s federal tax overhaul would have on New York.
One angle Heastie delved into was the de facto limit on housing prices, especially in downstate markets like Long Island, that could develop if the mortgage deduction is capped at $500,000.
With such a cap, people might be hesitant to buy homes with mortgages above $500,000.
“You’re really going to stagnate the real estate market. If I have a house that’s worth $540,000 I can only now sell it for $499,000,” he said.
And that in turn would place a cap on revenues from the state’s mortgage tax.
Still, perhaps echoing the “New Yorkers are tough” theme that Cuomo likes to play on, Heastie said “We’re New Yorkers. We’ll get through it.”
The Capitol Confidential team: