While the rest are generally sound, Number 6 abandons the market and capitalism in favor of government intervention again, which is unfortunate and invites the system to be abused and gamed by the usual set of cronies. I'm against it.
Number 1 should avoid use of the proposed exception for the same reason that mortgage interest shouldn't be deductible: it's a subsidy that distorts the market and is unfair to the good people who are still renting (who are, broadly speaking, probably not as well off in general, so it's a regressive subsidy where we pay the rich).
You should add a #8 to remove all government subsidies of flood insurance and similar vehicles, especially along rivers and coasts, as they're basically paying people money to build homes (often luxury or vacation homes) in dangerous places.
Agreed on all points. I put in #1 because a substantial number of HN readers are highly invested in the US residential property market, and in past conversations with people who were similarly invested, not mentioning that exemption turned into a dismissive non-starter conversation. My concession to even get a conversation started at all with those folks. Upton Sinclair comes to mind: It is difficult to get a man to understand something, when his salary depends on his not understanding it.
#6 is an attempt to reconcile the following challenge. Well past the point when developers could foot the bill for infrastructure expansion, we continue levying taxpayers to pay for it all while property developers reaped the majority cash benefits the soonest from the expansion. This heavily subsidizes inner core residents who get there earliest, and regressively penalizes later generations and residents settling the outer rims with increased infrastructure costs that increase as the square of the distance from the core, while outer rim density-based tax revenue functions more linearly. We're saddled with the legacy, but how do we allocate the true infrastructure expansion costs of growing outwards instead up/downwards, not to speak of remedying past distortions that have magnified effects today? I'm fine with not going with my #6 as I'm highly dissatisfied with it as well, but would welcome other cost allocation mechanism ideas, any to offer?
#9 Remove all subsidies, deductions, and tax credits. Including those involving land banking. [1]
#10 All commercial property tax subsidies/waivers/rebates/etc. must pass by a super-majority vote of the ones who pick up the tab for the gap.
I don't have data to back this up but in regards to #1, wouldn't most people who are paying mortgage interest be middle class? Wealthy enough to own a house but not to buy it outright? I also believe that if you own multiple homes, you can only deduct this on your primary residence. I've always felt this is a small tax break for middle class.
Then lower the middle class taxes so people can choose how to keep the savings, instead of being forced to buy a house to take advantage of a specific tax break. (I'm being the devil's advocate here, I realize some taxes (or breaks) exist to incentivize behaviour.
When mortgage interest rates are relatively low like now, I would think even wealthy people would want mortgages. By using a mortgage instead of paying cash, it would be possible to buy more property (a fancier home, a vacation home or rental properties). Or they could invest more in higher-yield investments like stocks.
Number 1 should avoid use of the proposed exception for the same reason that mortgage interest shouldn't be deductible: it's a subsidy that distorts the market and is unfair to the good people who are still renting (who are, broadly speaking, probably not as well off in general, so it's a regressive subsidy where we pay the rich).
You should add a #8 to remove all government subsidies of flood insurance and similar vehicles, especially along rivers and coasts, as they're basically paying people money to build homes (often luxury or vacation homes) in dangerous places.