My town has an award-winning recycling and disposal center. (Generally referred to as “the town dump”.) Every year we get a summary of how much they can sell stuff for, and how much they pay to get rid of stuff.
They make money on aluminum. Recycled aluminum is legally the same thing as “virgin” aluminum, as the process of recycling it cleans it. This is feasible both because it’s processed as very hot temperatures and because it’s very different from most contaminants. It’s a lot harder to separate out plastic from oil-soluble toxins.
They also make money on type 2 plastic. They do this by having very strict standards on what they accept, so their plastic isn’t contaminated with other plastics, food, etc.
They used to be able to recycle glass, but the company that bought it went out of business. Even then, they were able to sell it because they had consumers separate the glass by color, so it was “clean”. Now they sell glass as “clean fill” to a company that makes road pavement. Or maybe they pay that company less to take it off their hands than it costs to dispose of landfill items.
They pay someone to haul away paper and cardboard for recycling for less than the landfill cost. And they can one do this because again, consumers keep the materials clean and deposit them in separate areas.
The sign as you enter the dump says “recycle right. When in doubt, throw it out.”
I’m dubious that single stream recycling works anywhere.
On the other hand, I’m also dubious about the evils of landfills. A good sanitary landfill is environmentally pretty neutral. And future generations might find them valuable to mine for rare earths or metals or whatever.
I think it’s a good idea to tax packaging (or products in general) to reflect their disposal costs. But those should be real disposal costs, capped at the price of landfill space for anything that’s not too dangerous to dump in landfills. (Mercury, for instance, needs special processing.)