So just for the sake of argument we go along with the premise that one wheely bin, one street lamp, one car, and the other ancilliary services provided by the council, supplies both households in his example., with the same services.
Why then should the size of the house have any bearing on the charge for these services, as the costs are the same?
On the grounds that taxes should be levied with some regard to ability to pay?
The better off are naturally in favour of flat-rate taxes.
I think we are all in agreement (a first?) that a local income tax would be better.
There are also arguments in favour of a land tax (as distinct from a property tax),