You need sources, as does the down-voted comment. Cash-strapped states does not equal "eminent domain" on random suburbs. Some tax-levels on property taxes are going down or neutral (Utah) while others remain the same (California, both () examples are personal experience) and can't be used as a broad paint-brush stroke.

Interest is a tax write off, many states are suing for home-owner protection, the very large fraud lawsuits against mortgage lenders, etc.

http://www.google.com/#sclient=psy&hl=en&source=hp&#...