The whole $250K and $500K rather than just indexing for inflation of $50K a year is designed to prevent Californians and New Yorkers from moving to get a new job when they get laid off. Many people in these Democrat leaning states can't move to get a job in a new area because the tax on their home sale is higher than their annual take home pay and that is fine with Republicans. In fact, the feds lose money since those people are not working and paying social security and income tax on wages. Let americans move to new jobs in new cities. Dump the home tax.