It's not as regressive if you charge sales tax on housing. In point of fact, the US mortgage interest deduction is highly regressive. It favors those who can a

It's not as regressive if you charge sales tax on housing. In point of fact, the US mortgage interest deduction is highly regressive. It favors those who can afford a down payment on a house over those who can't, who by definition will be poorer. If the sales tax applied to buying a house, it would be quite progressive. It could even only apply to the cost of the house less some amount (say, $100k) which would make it even more progressive.