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.
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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.