In 1986 - when the Tax Simplification Act was passed - everyone lost the right to deduct interest on personal loans which would include car, boat, jetski, etc - they still sold . But the killer at the time was capital gains where the effective rate was increased to 28 from 14% -
I don't think that interest on 2nd home S/B deductible, nor should interest above a certain purchase level - say 500K - but that would not cover basic housing in some markets, & would be palatial in others - nor should property taxes be deductible (for the basic reason folks would start complaining more if they were out of pocket + should someone else subsidize your life style) inheritance taxes should be paid on any capital that was not originally taxed, but only at whatever is decided for a capital gains rate. I don't believe anyone rates a windfall at the expense of others.
As for middle - we drink rarely, no one smokes, my biggest vice was the dogs which requires $20K/year/dog to really play, eating out on occasion for the atmosphere as every one that cooks in the family does well so no need to eat out for quality . I would guess we live a middle class life style with a tax rate under 2% of gross - does that make us bigger tax avoiders than RMoneys ?