First Faculty Advisor
accounting; homeowner benefits; regressivity; TCJA; tax
CC-BY-NC-ND; CC-BY; CC-BY-SA; CC-BY-ND; CC-BY-NC-SA; CC-BY-NC
Data from the Internal Revenue Service's Statistics of Income (SOI) was analyzed to compare the tax subsidy for homeowners from filing year 2018 (for calendar year 2017) and filing year 2019 (for calendar year 2018). Homeowner tax benefits were calculated with an extensive analysis to understand how the Tax Cuts and Jobs Act changes affected homeowner tax benefits on a vertical equity basis. Prior research has shown homeowner tax benefits are regressive in nature. The primary research question in this study is whether TCJA increased or decreased regressivity of homeowner tax benefits. The results of this study have shown that the regressivity of homeowner benefits for taxpayers was increased with TCJA. An increase in regressivity implies decreased vertical equity. These findings can be utilized to inform policymakers in making future decisions about tax benefits provided to homeowners.