Yes to part 1.

Supply and demand drive a market. So far demand outpaces supply. If the state and cities tax themselves out of a competitive market, there will be a glut of both homes and rental units on the market.  A glut will mean less tax monies coming in. Less tax monies means the Bond costs will be increased sans a vote.  Or the city will be bankrupted.

As for more people buying homes, well, that is what got us into the Great Recession (Depression) mess to begin with. Simpy put, spending money one does not have is not a good long-term solution. Includes schools-many of our childrens children will still be paying for school debt, on schools that no longer are in use or even exist in fact.

PS People look to today at tax histories before buying-if it has lurched up and up, they look elsewhere.

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