Some economists point out that even if we just increase taxes on the wealthy, higher costs will get passed along to consumers and workers. This argument sometimes kills tax proposals; like the rich folks have us over a barrel due to our cravings for cheap products and services.
I have to ask, do we need all these cheap products and services from places like Amazon and Walmart? Do we need all that clutter in people's lives with it's impact on the natural environment?
There is no free lunch. Life does have tradeoffs. For instance something like a carbon tax would increase things like the cost of gasoline. This is needed for the environment and to nudge technology toward greener energy, but it will hit working people, in the short run. A price that might be worth paying; especially if things are planned carefully to help those who really do need the energy; such as farmworkers following the crops.
A carefully crafted tax bill would need to preserve most of the working assets of businesses; such as the buildings and equipment. Businesses would need to be able to exempt some expenses so the business climate could remain a healthy source of jobs, products, services, taxes and charitable contributions. Otherwise, politicians will hear hell and the political climate favoring the taxes will crumble.
While there is no free lunch, it does seem like we can get by taxing the wealthy to some extent. Due to wide wealth discrepancy; there does seem to be a lot of loose money awash around the world. Wealthy people are looking for places to park their extra personal wealth. Not necessarily in creating businesses. Wealth is used to buy up real estate and in some cases even just leave it empty. They buy empty condos and various properties while other people remain homeless. I hear about wealthy folks buying condos and leaving them empty since having renters is too much hassle. The property goes up in value anyway, even while empty. This indicates too much money is flooding into real estate. In Vancouver, BC. this has been a big problem so they have passed a tax on foreign investors of empty property. Sometimes called the "empty condos tax." This is a worldwide situation. Empty investment properties is a problem in the US as well. A sign of an overheated asset market.
Taxing the wealthy could cause a decline in the markets for things like high priced antiques, summer homes, yachts, collectables, high priced art and so forth.
Increasing revenue for governments could boost the economy in other ways such as infrastructure development and creating jobs in green energy. Also governement can put more money in the hands of lower income consumers thus stimulating consumption.