This is a progressive property-tax system. It works because it avoids counting houses. (It's different because houses are discrete. Housing value is not. Dividing discrete assets is trivial. Dividing continuous ones is not.)
I personally think that progressive taxes and benefits can be quite reasonable, as long as they’re kept simple and non-discriminatory. As soon as the designs start to get clever and, say, phase benefits out with increasing wealth or income, they break down quickly.
Medicaid would be an example of getting it very, very wrong.
