On the political economy side, it’s unlikely that we will displace things like the mortgage interest deduction. What if we were to introduce a renters’ deduction instead?
The idea is like that: on the one hand renters pay rent with post-tax money. But owners pay mortgages with pre-tax money. To equalize the two situations, owners-occupiers get taxed on the virtual income they are at once producing and consuming---ie they are taxed as if they were renting to themselves.