“If I ran the zoo, that’d be my main idea. We’d start out with things like congestion fees and carbon taxes that serve non-revenue policy goals but do raise money. Then we’d add on some land taxes and VATs and such to fun public services. Once that’s squared away, you can do redistribution with a progressive payroll tax, a small wealth tax, whatever.
But standard practice among Democrats has become to argue that we should expand public services and pay for them by taxing the rich. This feeds into a poisonous dynamic that’s bringing the country low. On the one hand, it means that Democrats are insuffiently attentive to the question of cost-effectiveness. The pitch to taxpayers isn’t “this is a cost-effective use of your money to provide valuable public services” it’s “wouldn’t this be nice, and besides you won’t have to pay.” Then on the other hand, you unleash a toxic dynamic whereby rich people’s desire to not have their wealth redistributed gets channeled into a ferocious ideology of claiming that no public services are worth financing. So rather than having two separate debates—one about the provision of public health, educational, and transportation services and the other about redistribution—we have one big combined debate. The result is that we underspend on public services, and then tend to spend the dollars that we do spend ineffectively.” — Matthew Yglesias