> the idea that you should view housing as simply a matter of supply and demand and not consider any externalities is an abominable position

Comrade, I am speaking about "how it works" not "what would be really nice if..."

> Income from residential rentals is taxed at the same rate as ordinary income, the kind you get from actually doing something.

I can tell you have never owned an apartment or a house. The amount of money and time that goes into maintaining a property, managing risk of bad tenants, etc is really high. Not to mention property taxes which is likely something you've not heard about (or, at least you don't mention that in your post when talking about the tax burden.)