I am intrigued by your comment:
“But, if we’re gonna keep shoving this monstrosity down people’s throats, then let’s treat a “household” as a business enterprise trying to make a profit.”
What manner of tinkering with the Internal Revenue Code do you propose?
With a business, they are selling their products or expertise, and that is made possible by having that background structure that makes all that possible...buildings, factories, offices, uniforms, transportion, utilities, etc..
With a family enterprise, they are selling their labor that is made possible by having that background structure that makes all that possible....buildings, garages, offices, transportation, utilities, etc.
Just have everyone file on Schedule C