Mixed Impacts of the Federal Tax Reform on Consumer Expectations

Olivier Armantier, John Conlon, Gizem Kosar and Wilbert van der Klaauw

No 20180523, Liberty Street Economics from Federal Reserve Bank of New York

Abstract: The Tax Cuts and Jobs Act of 2017 changed the tax brackets, tax rates, credits and deductions for individuals and similarly altered corporate tax rates, deductions and exclusions. In this post, we examine whether the reform has shifted individuals’ expectations about their financial situation and the macroeconomic outlook. We also ask whether households have already started to adjust their behavior in line with their expectations. In order to answer these questions, we use novel data from a special module of the New York Fed’s Survey of Consumer Expectations (SCE) fielded in February 2018 to a nationally representative sample of heads of households.

Keywords: tax reform; consumer expectations (search for similar items in EconPapers)
JEL-codes: D13 H24 (search for similar items in EconPapers)
Date: 2018-05-23
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