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10 points

Generally speaking landlords charge as much in rent as the market will bear. If they could get away with charging more they would already be doing so.

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2 points

Right, and when tenants aren’t paying taxes?

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4 points

Rents will presumably rise accordingly, and then be captured in the form of a tax that is both very difficult to evade and no longer harms economic efficiency

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2 points

I think that’s a rather hopeful view of the situation, but, on the other hand, I guess it would also help real estate bubbles from forming so there’s that at least.

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3 points

Right, and when tenants aren’t paying taxes?

Then tenants will keep more money, in any case where there’s any competition in housing.

And in any case where there’s no competition in the housing supply, tenants will still be unharmed because they’re already paying the maximum amount that landlords can get away with.

It’s risk free for tenants.

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