Probably not. I suspect there would be just as many buyers, but the prices of homes would be substantially lower. Since these homes are basically subsidized today, the removal of the subsidy will result in a decline in prices.
The second is just plain silly...you suggest that the owner of a $60k pre-fab house on a slab in a county with a tax structure that would impose a tax of maybe a grand a year should be gifted with $25k every year by the rest of us? Incredible.
No more silly than providing a similar subsidy to an owner of a $500,000 home just because he carries a mortgage on his house, while his next-door neighbor in an identical home paid cash for his.
Simply put, it appears that for anyone with a tax rate much greater than 15%, then this proposal will work as a tax increase:
Simple example: 200K net income after taking a reduction of 40,000 for mortgage interest paid (gross 240,000).
assume 30% tax on 200K
tax on current system: 60,000 in taxes
Now, instead of deducting the 40K you go with this new system:
240,000 x 30% = $72K less 6K "tax credit" = $66,000 in taxes owed.
This crap is nothing more than income distribution once again, and the middle class gets screwed. Moreover, how is this going to affect mortgage interest on business offices, second vacation homes?
Unless this is phased in gradually, you are looking at a Depression. The only people who would be for it are the:
the extremely wealthy who are not dependent upon the real estate market or housing industry for their continued success, or who don't really care if their real estate holdings take a 5 to 10 year hit, and who can also weather a strong recession/mild depression; and,
the lower class who are renters and are too stupid to understand how this plan could really screw up the economy along with their chance for gainful employment (I guess they hope to one day see housing prices fall so they can get that starter home for under 100K along with that longed for above ground pool, pink flamingos in the front yard, and enough outdoor electrical outlets to power 50,000 christmas lights so as to beat out Verne's display next door).