In the US this is already pretty common and often known as the homestead exemption. A primary residence gets a much reduced tax rate.

In California you get $7,000 off the assessed value of your home with the homestead exemption. So ~$70 off your yearly taxes. Must have been much more important value when this was passed into law but almost nothing now on the usual $10,000/yr prop tax bill.

Where I live it’s a straight property tax reduction. In my current house I pay 1500/year in property taxes. If it was not my primary residence the property tax would be between 6k-8k.

Instead of changing the assessed value, it lowers the percentage of tax paid on the value.

I think parentnis referring to the federal income tax deduction on interest, which most definitely is significant if you are able to itemize.

You can add value by being a good landlord. Some people want to rent. If you provide a service great. But housing is funny as it's seen as such a safe investment and seems to be inflating too quickly.

This is how we get such a complex tax code that is abused by special interests. It's so easy to say, "go tax that person over there. He can afford it"

It could be a tax, meaning it is still possible it just costs more. Or could be made outright illegal.