2017 tax code.

Blue collar worker. $50,000 income. Buys $125,000 house. 5% interest rate
White collar worker. $180,000 income. Buys $400,000 house. 5% interest rate.

Everything else about these two people is identical. Same number of kids, same location, everything is the same.

They are both paying interest on their homes. But who is able to use that interest expense to reduce their tax bills? The one who able to buy the more expensive home (white collar worker).

Blue collar worker has mortgage interest expenses ($6250), but it isn't high enough to overtake the standard deduction, so it is not in her favor to itemize. So even though she is a home owner, there is no tax benefit for her.

White collar worker has much higher interest expense ($20,000). This is much larger than the standard deduction, so she is able to benefit from the mortgage interest deduction.

How is it even the least bit fair that these two people are doing the exact same thing (owning a home). But the benefit that comes from that flows only to those wealthy enough to buy expensive homes?

Literally the more wealth you have, the more the government will subsidize you.