being hit with a tax that basically kills any chance of renting out something.

That is exactly what should happen. It should be practically impossible for an owner to “rent” a property for enough to justify doing it. Landlords should be heavily pressured to convert tenants to buyers.

“Renting” should be confined to commercial activities, not residences. You want to rent out space for a shop, warehouse, office, factory, no problem. This is only for residential property that you are not living in. It should not be economically feasible to rent out such property as an investor, because that practice strips tenants of equity and is the leading factor driving people into poverty.

Go ahead and use your property to generate an income, but do it by charging interest on a loan, not rent.