Comment by immibis

If the goal is to maximize tax or tax fairness, then richer people should be taxed more. If the goal is to minimise wasted utilisation then it should be a flat tax so that everyone is trying to get the most value out of the same land. A variable tax allows grandma to keep living in her bungalow next to the skyscraper, while a flat tax forces her to sell the bungalow to someone who wants to build a skyscraper, and then she can rent an apartment in the skyscraper (maybe), which is sad for grandma but is objectively a much more efficient use of space. Both are quite reasonable goals, so the balance depends on how we feel about each as a society.