If the tax were dropped, the short term effect is people would spend the saved money on something else. And in the long term they'd find rental that ends up in

If the tax were dropped, the short term effect is people would spend the saved money on something else. And in the long term they'd find rental that ends up in the same ballpark price per month - so they'd end up not saving anything and the various governments wouldn't collect taxes. So the tax would have to come somewhere else.