I would like to see the mortgage interest deduction destroyed. If they want to replace it with a home ownership tax credit, fine. But the fact that we all subsidize the realty and mortgage industries via this ridiculous deduction is immoral and leads to all of us taking on way more debt than a sane person otherwise would. And I say this having paid $16,000 in mortgage interest last year, which roughly translates to a $5000 gift from the renters of America to my wife and I, who really don't need the money.
We have a similar freeze here in MI, although it's a little higher than 1%, if I'm not mistaken. One downside is that it's really difficult to know what your taxes will be the year following the year in which you purchased a home. If the owner has owned for a long time, you can bet they'll be a lot higher.