The above actually plays into the heart of the first criticism (although the first criticism has some problems). People more able to effectively play the valua

The above actually plays into the heart of the first criticism (although the first criticism has some problems). People more able to effectively play the valuation game will arbitrage the people that aren't, which will concentrate assets as the game is played over time and create more market power abuse, which isn't really what we want as a society in at least a residential property market. From a society perspective, we probably want a property market that makes it easy and affordable for the average person to get enough house to form a family and support offspring in a location that doesn't put undue stress on that family (i.e. through long commutes, unsafe streets, etc). I don't see how this tax system gets us to what we probably want and see lots of ways it gets us toward higher prices, market power abuse by sophisticated operators and all the problems that come along with that.