Dianne Feinstein didn't get the message
Oops! California's senior senator just came out endorsing a tax break for the affluent.
With Democrats' denunciations of the GOP tax bill focused on how it benefits the rich, Senator Dianne Feinstein struck a discordant note and complained that it actually hurts the well-to-do. In a tweet, the senior senator from California complained that well-to-do home-buyers will no longer be subsidized with tax deductions for large mortgages.
The Republican tax bill caps the mortgage interest deduction at $750,000 for new mortgages. In California, seven counties have average home prices that are more than $750,000: Alameda, Marin, Orange, San Francisco, San Mateo, Santa Clara and Santa Cruz counties. #GOPTaxScam
— Sen Dianne Feinstein (@SenFeinstein) December 17, 2017
As Richard Baehr points out, there are 49 other states to move to, not to mention quite a few counties in California where housing prices are far lower. There is no question that the ability to deduct mortgage interest payments has pushed those prices in the seven counties even higher. Ask any Democrat about the oil depletion allowance, and you will hear about how tax breaks amount to a subsidy.
The senator would never stop to consider the way that land use restrictions (hello, greenies!) have pushed up prices in those Bay Area counties. Even the New York Times understands.
Senator Feinstein is also ignoring the many "housing advocates" in the Bay Area who decry the "housing shortage" brought about by development restrictions and wealthy buyers (able to pay even higher prices thanks to the unlimited deductibility of mortgage interest). I don't think they are worried about the limits on mortgage interest deductibility.