> Note: I believe this would be the case even if the money was literally burnt/disappeated rather than being given to the government

No need to literally burn the money, either: just use the entirety of that increased tax revenue on paying down the national debt, and lower the debt ceiling by the exact same amount so it can't go back up. This is an even better deal if you think "interest rates are too high, the Fed should cut a lot more". It all fits. And we managed this throughout the 1990s.