False, by the same logic of land value taxes.
The supply of land is fixed and cannot respond to changes in supply or demand. Or to changes in cost structure, including both taxes and subsidies on the land itself (excluding improvements).
Landlords eat LVT. And they pocket the mortgage subsidy.
Tax codes pick and choose among taxable and exemt income and costs all the time. Your objection is patently absurd.
That seems to mismatch with fairly well-established economic doctrine, possibly to the extent of being Nobel Prize worthy if proven.
Its lack of Nobel-worthiness is based on its obviousness, not novelty.
The main sticking point is that the wealthy enjoy teir free money.
I've provided you seveal refeences, please do read them. The Wikipedia article explains and diagrams the dynamic very clearly.
This thread is about the deductibility of mortgage interest for owner-occupied vs rented properties.