Regarding taxes, acknowledging that they aren't fun, and government spending can be wasteful, consider:
Tax what we want less of. Apply a zero tax, or even a negative tax to what is better. Think creatively. What do we want less of? Pollution, destruction of the environment, excessive consumerism of wasteful products, hunger. What do we want more of? Efficient solutions, not efficient exploitation. That's the problem with capitalism today - it encourages efficient exploitation, not necessarily efficient solutions for the consumer.
Tax pollution. Tax resource exploitation. Tax wasteful products. As for hunger, that's where thinking creatively helps.
I made a long post about automobile design and production. I mentioned the
Volkswagen XL1 as an example. The key is to get businesses to compete effectively in a constructive way. Right now, automakers compete by determining the most efficient way to sell expensive automobiles. We want to get them to compete at building the most efficient automobiles. Big difference.
I've been thinking of one way to do it, and I'm not entirely sure of the mathematics behind it, but follow along.
Take the full lineup of new automobiles available today. Split them into ten tiers, numbered one through ten, where the least efficient autos are in tier one, and the most efficient are in tier ten. Tier one gets the highest tax. Tier five gets the lowest positive tax. Tier ten gets the largest negative tax. Now the automakers will compete like crazy to get their auto lineup into the top tier.
If most everyone buys only automobiles in tier ten, then it becomes even more difficult to get your auto placed into tier ten, because the negative tax has to be paid by the positive taxes below it.
Wealthy people can afford whatever auto they want, regardless of tax. People who aren't wealthy will embrace the negative tax on the most efficient autos, and benefit from their efficiency.
Efficiency should increase drastically, much more aggressively than today, as automakers compete to always have autos in the top tiers. New auto startups will obviously strive to only have autos in the top tiers, and by doing so, they'll be able to compete because of the negative tax. This will increase competition for efficiency even further.
Notice that this system does not mandate a specific MPG requirement. For example, the government currently might be mandating 30+ MPG for future automobiles. The problem is, that might be too difficult or too easy for automakers to meet. But what I'm proposing drives the market to competitively up the MPG continuously with no upper limit, and the end result should approach the MPG of the Volkswagen XL1, which happens to be 260 MPG.