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Tax Cut Effects on Housing Still Debatable; Home Sales Seen Rising; Rates Bounce Back

Tax Cut Effects on Housing Still Debatable; Home Sales Seen Rising; Rates Bounce Back

As Americans are nearing the deadline to file their 2017 federal income tax return, what this will put on their 2018 return is still open to debate. The effects of the Tax Cuts and Jobs Act, passed by Congress in December was, in the words of CoreLogic's chief economist Frank Nothaft, "the largest change to the U.S. tax code in more than three decades ," one that "has touched every person and industry." He recently looked at how it might affect tax-related housing decisions made by families. The bill, he says, has lowered personal income taxes in the aggregate, but not necessarily for every taxpayer. An increase in after-tax income does increase, at least in general, the amount spent on shelter and thus the likelihood of being a homeowner - what economists call the 'income effect." This should
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