There’s already an exemption for capital gains tax on the sale of primary homes. $500,000 for married couples, and you can remove the cost basis and cost of improvements from the equation.
In other words, almost nobody is taxed on the sale of their primary home.
A household that makes $500k on a good year is actually in the 1% statistically. They have left the working class long ago. They could work for about 7-10 years in their career and retire with an above-median salary (withdrawing following the 4% rule) in perpetuity. That is by definition not the working class: that family barely has to work in order to secure a lifetime of comfortable living if they don’t inflate their lifestyle.
In my view, your comment acts as an implication of support for regressive tax policy that hurts the actual working class. No, moderately wealthy people do not need help. No, we are not temporarily embarrassed millionaires held back from generational wealthy only by government tax policy – that’s a farce sold to us by the very billionaires that want to avoid being taxed. They want us to think that taxes hurt us more than they hurt them, which is mathematically not true.
They want us to think that “if only our taxes were cut, we could go back to affording a middle class lifestyle.” It’s not true.