The mortgage deduction affects anyone with a "large" mortgage, but at current housing prices "large" is becoming the norm.
Our income at the time, combined, was ~160k.
>Few couples base their marriage decisions on the tax consequences that may result.
I'm willing to bet the number of 20-somethings that have "tax considerations" deciding their marital status can be measured in basis points. Furthermore, nothing I see there is a "new penalty", while the numbers have varied over time, those rules look to be exactly the same as they were 20 years ago.
Second, you are nuts if you think this has ANY significant impact on people getting married.
Third, you can file married filed separately.. so while I'm not up on all the details of that, you can probably avoid the simple impacts it might have.
Anyway, that is an extremely crazy weak argument.
All these things whether good or bad makes it less likely people settle for pairing together like they typically would have.
The usual argument that says that the government disincentivized marriage is through social safety nets like welfare, particularly ones that pay more for single parents without a spouse in the house, as well as mechanisms like child support payments.
The usual argument that says society has disincentivized marriage is basically through access to sex. There used to be a culture of enforced monogamy, where there was enormous social pressure to be married before having sex, and especially before living with one another. Now, that stigma is largely gone, so the incentive to get married has diminished substantially.
Again, not making a value judgement, just answering the question.