[Wissa]

I think the bigger issue for me and my family might be a hit to the local real estate market, if folks who can afford a $1M mortgage can no longer deduct all that interest. That’s expected to drive down home prices. Then folks like my dear old mom (little income, but millions in RE value) are going to take an assets hit.

So in other words, the real estate value has up to now been artificially inflated by a government subsidy in the form of tax deductibility of mortgage interest on million dollar mortgages.

I guess I don't have much sympathy for those who have their real estate value reduced to non-subsidized levels. And not even all the way to non-subsidized levels at that. Only to the extent the mortgage exceeds $750,000.

[William Tell]

Wissa said: "I guess I don't have much sympathy for those who have their real estate value reduced to non-subsidized levels. "

I have some sympathy for people who have relied upon tax benefits in the past to make decisions and now find that they are saddled with problems they would not otherwise have.

Wages are higher in some states than in others for the same work. Home prices similarly vary along with the average size of a home mortgage. These differences don't necessarily translate into a higher standard of living but a person in one state or region might find themselves paying a higher proportion of their income on taxes than someone else who has the same family size, the same house size, the same interests, and virtually the same local amenities.

The tax laws have allowed differences between states that probably shouldn't exist and may be contributing to the increasing polarization of our nation.