Recycling industry needs some help

That’s likely different from place to place. I know for my city, it says to rinse them out. I looked at the requirements for San Jose (your city, I assume) it’s not mentioned.

I can’t imagine it would go over too well if you implemented some type of tax, at least at the consumer level, for that. In my city, recycling is included in my taxes. I wouldn’t want to get taxed by starbucks for buying something in a plastic cup and then pay tax to have it taken away. Granted, they could just call it something else or charge it higher up in the supply chain, but it’s the same thing.
ISTM, things have to flip around to create a demand for recycled materials. Perhaps giving businesses a tax credit based on how many of their supply purchases come from recycled materials. If Starbucks moves to cups that are made from recycled plastic and enough other big businesses do, there’s going to be a demand for plastic scrap. Look at the copper industry. There’s so much demand for copper scrap that the price is kept high enough that people routinely risk their lives and/or freedom to steal copper.

I’ve wondered about the environmental impact (mostly carbon emissions) of shipping all of this waste to China. Is it more or less than the impact of not recycling? It would be difficult to calculate since there are different impacts.