I think I covered this topic myself in my thread, “The “Ideal” Federal Govt. and What It Will Cost”.
The core principle is this: you should pay for the services you use. The various governments (Federal, State, Local) provide various services which people want such as protection from foreign countries, local crooks, etc. Freedom is not free.
Moreover, the more you have to protect, the more it costs to protect. Ergo, rich people should pay more for this protection than poor people.
In the thread above we concluded that a “perfect Objectivist society” might see overall taxes be cut by something like 1/3 to 1/2. This is a nice bonus, but is far, far from the “tax free utopia” that many mistakenly assume a free society produces.