The final version of the federal tax bill is now in print. I spent the better part of this weekend reading the more than 500 pages of tax changes that will go into effect after the bill is approved by Congress and signed by the President later this week.

A tax bill like this is seldom ALL bad or ALL good. However, there can be no question that for the Long Island, the bottom line will be devastating to the local economy.

Yes, the legislation reduces the individual tax rate across every income bracket. In addition, the bill also raises the exemption amount for individuals under the alternative minimum tax (AMT). This will help wealthier taxpayers the most. The standard deduction is doubled. This will help middle class taxpayers who do not itemize their deductions.

However, for most of the middle class on Long Island, who own a home or who itemize deductions, the new tax bill will be a disaster.

The worst provision is the $10,000 cap on the deductibility of state and local taxes (SALT). According to the Long Island Board of Realtors 46% of all Long Island homeowners pay more than $10,000 in property taxes.

In addition to the SALT cap, the mortgage interest deduction on new mortgages would only apply to mortgages of $750,000 or less, reduced from the current $1 million limit. The personal exemption of $4,050 for each household member is also eliminated. The loss of these deductions is an effective tax increase for every Long Island homeowner.

Real estate is a key to the economy on Long Island. It is the cornerstone for the East End. Real estate isn’t just a living for real estate brokers; it puts food on the table for every tradesman and builder in the region. Main Street businesses also depend on the real estate industry.

According to the L.I. Board of Realtors, home values are predicted to drop 10% because of the new federal tax bill. According to Trulia, the real estate industry website, Long Island will become the worst place in the nation to buy a new home, if the federal tax bill passes.

The adverse impact on real estate won’t be just for the second-home market. It will also impact every local first-time home-buyer who needs these tax deductions to be able to make the monthly mortgage payments.

The proponents of the tax bill argue that the federal government “should not subsidize ‘high cost’ states with these deductions. Blame your state and local governments”.

They are just wrong. According to the Rockefeller Institute, each year New York State already sends $48 billion more in taxes to Washington than it gets back in services. We are subsidizing other parts of the nation with our hard earned tax dollars. That subsidy will be even greater by at least another $10-15 billion under this bill. Think about how much lower our own state and local taxes could be if we didn’t have to subsidize the so called “low tax” states with an inequitable federal tax code.

Instead of true tax reform, the President and U.S. Congress have crafted a tax bill that gives the bulk of the benefits to the wealthy and campaign donors. Again, the middle class is left behind. It is no accident that the bulk of benefits will accrue to the “red” states with the “blue” states picking up the tab. All of our children will pick up the tab for the $1 trillion hole this will create in the federal budget. Those who perpetrated this ill-considered legislation must be held accountable in 2018.