Archdruid suggestion for a new taxation regime to prioritize good allocation and consumption: Immodest Proposals
The primary economy, which is nature, and the secondary economy, which is the production of goods and services by human labor, are subject to negative feedback loops that tend to hold them in balance. The tertiary economy, which is the exchange of money and other forms of abstract wealth, is subject to positive feedback loops that drive it out of balance in ways that unbalance the other two economies as well.
At the risk of veering off entirely into fantasy, then, let’s imagine a new tax code that taxes the right things instead. In this imaginary code there are no sales taxes, and no taxes on income from wages, salaries, dividends, and rents – that is, no taxes on the secondary economy at all. Instead, there are two classes of taxation. The first, affecting the primary economy, is on natural goods and services; the second, affecting the tertiary economy, is on interest income, capital gains, and all other forms of money made by money.