Allowing rent to mostly accrue to land owners (as in Canada and other democracies) has the same negative effect as not collecting it all, as in the former USSR.
Michael Hudson writes:
The former Soviet Russia and other [communist] economies had NO payment of rent. But they had land. Because Russia did not collect the rent for land it led to inefficiency. Bureaucrats let the "best" flats in a city to Communist Party members in return for favours.