The biggest problem is that, as per the law of rent, rents will rise by the amount of the dividend once the market has time to react to it. There would be cons

The biggest problem is that, as per the law of rent, rents will rise by the amount of the dividend once the market has time to react to it. There would be constant compulsion to raise the basic incomes at the cost of greater and greater public debts or taxes on production... and all the corresponding deadweight loss. However, if it were funded by taxing land by value, then the rising rents would produce a sustainable public surplus.