Yes, the exclusion is up to $500,000 if the couple is married and files jointly; it's $250,000 otherwise.

But strictly speaking it's capital gains taxes, not income taxes.

Right now there are some situations in which a wealthy person could theoretically pay less percentage in capital gains taxes than a working class person could pay in income taxes. See Warren Buffet's repeated example of paying less (%) taxes than his secretary.

Obama has proposed to raise the capital gains tax from 15% to 20%. But as far as I know he has not suggested eliminating either the exclusion of primary home sale proceeds from capital gains taxation or the mortgage interest deduction.

http://taxes.about.com/od/capitalgains/a/CapitalGainsTax_4.htm

http://www.irs.gov/publications/p523/ar02.html#d0e2048

http://blogs.abcnews.com/politicalradar/2008/08/obama-clarifies.html

"When the snows fall and the white winds blow, the lone wolf dies but the pack survives."
Winter is Coming

Now this is the Law of the Jungle—as old and as true as the sky; And the wolf that shall keep it may prosper, but the wolf that shall break it must die.
As the creeper that girdles the tree-trunk, the Law runneth forward and back; For the strength of the Pack is the Wolf, and the strength of the Wolf is the Pack.