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As if the collapse in the housing market had not done enough damage to the U.S. economy, the president’s debt commission is now proposing changes that could take the industry off life support. Among the recommendations in the commission’s 65-page report is one to eliminate the tax deduction for mortgage interest on homes over $500,000 (the current limit is $1 million) and restrict it to primary residence only. The recommendation would also eliminate interest deductibility for home equity loans (which are currently capped at $100,000). The effect of these changes would be to immediately reduce the value of all homes …