>The concept of imputed income also helps homeowners. If you own a house that you rent out to people, the money you get is counted as income. If you are an owner-occupier and paid off your mortgage, then you effectively pay rent to yourself... money that you otherwise would've needed to pay to others, but don't need to pay tax on it.

Imputed income is everywhere, are you suggesting it should all be taxed? When you prepare a meal in your kitchen instead of paying for it in a restaurant, you effectively pay chef's wages to yourself, "money that you otherwise would've needed to pay to others, but don't need to pay tax on it." Another reason why singling out homeowners on imputed rent is fallacious is that if the imputed rent were to be taxable, then the cost of maintaining and improving the home would be deductible, just like it is for landlords, and there would be no caps on mortgage or real estate tax deductions related to acquiring or improving the property, just like for landlords.