My observation is that the system is neither regressive nor progressive for people who don't already own a home.
Renters basically don't see this tax at all, and people who are considering buying a home see the same total burden of tax plus mortgage payments.
(Or for people who buy outright with spare cash instead of a mortgage, the constant burden is tax plus opportunity cost of capital.
A mortgage is just a way to rent some capital from a bank in return for compensating them for the opportunity cost.)
My observation is that the system is neither regressive nor progressive for people who don't already own a home.
Renters basically don't see this tax at all, and people who are considering buying a home see the same total burden of tax plus mortgage payments.
(Or for people who buy outright with spare cash instead of a mortgage, the constant burden is tax plus opportunity cost of capital.
A mortgage is just a way to rent some capital from a bank in return for compensating them for the opportunity cost.)