Personally, I’d like to see them remove the mortgage tax reduction. But there is no way they can do it, for the same reason there is no way they can increase interest rates:
It would devastate a housing market that is STILL weakening.
They are stuck. Ultimately, the only way out of this mess will be to monetize the debt (i.e. enter hyperinflation).. that will cause WWIII, but no “austerity” or other measure will be politically doable.
Personally I would like them to drastically cut social programs.