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You're confused; the parent comment and the article are primarily about the SALT deduction, not the home mortgage interest deduction. The main reason to mention "homebuyers" is that these taxpayers want to change their state of residence to lower their state income tax.

It's funny how the same "conservatives" that claim to love small and local government enacted tax policy that blocks states from effectively moving tax revenue from the federal government to the state government.




Stepping back from labels and left vs right dynamics, there have been a lot of words written about the new tax code just benefits the rich.

Whether you think states should be able to claim an uncapped amount of income out from under the Fed, whether you think that this tax policy is more or less likely to encourage smaller/bigger Federal government, it is definitely true that this is a substantial tax increase for anyone holding a large net value of personal property. Note that rental property does not have the same limits, as the deduction against rental income is not capped.


Crucially, it’s not just about a large net property holding. It’s about having a a large percentage of your personal worth in property. If you’re making a lot in salary, or you’re passing down millions in wealth, you’ve been offset on the personal property tax and other components of SALT. If you’re in the top 20% and you’re not getting offset on higher tax bands, you’re not offset.




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