When President Donald Trump released his tax reform plan in April, everyone was scrambling to figure out if it was good, bad or neutral. It's not an easy question to parse -- we all have different household configurations with different incomes and living situations, so trying to figure out who's spending more and less requires understanding a variety of influences and factors and bringing them all together. That's what the National Association of Realtors (NAR) commissioned PricewaterhouseCoopers (PwC) to do, and today the companies released the "Impact of Tax Reform on Owner-Occupied Housing," a report that used the "Better Way for Tax Reform" blueprint to show how suggested changes to the tax law could affect citizens in different income groups. The "Better Way" blueprint is very similar (though much more detailed) than the proposed tax document released by the Trump administration, so using the blueprint as a jumping-off point can give us a good idea of how taxes could change...
- An analysis by NAR and PwC shows that non-homeowners would see tax decreases, while most homeowners would see increases.
- NAR and PwC estimate that increasing the cost of owning a home and the opportunity cost of home equity will lead to 10-percent home price reductions in the short term.
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