Taxes don't hurt the economy, that's a right wing furphy, taxes just hurt the insatiable greed of the rich, just like having to pay for stuff instead of being able to steal it. Taxes kick the economy along because the government spends the money rather than sitting on it. Growth comes from spending rather than clumping in stagnant pools where slime try to outgrowth each others obesity.
If Oregon is serious about better balancing the budget they should start shifting more responsibilities from local government back to state government and substantively cut back on administrative costs, policing, schools, fire brigade are all services that could save enormous amounts with just one point of administration versus hundreds. So property taxes could be divided between state and local.
So if we were taxed at 100% and got everything through the government (AKA communism), the economy would do better?
Alright, the long version. Taxes above a certain level will harm the economy. This will happen because, as you said in your post, governments are notoriously inefficient, and seem to have a poor ability to tighten their belts, ever.
More specifically, regressive taxes tend to hurt the economy. A regressive tax is one that increases the imbalance of wealth. This is because those with less money have to choose to spend less on other things due to the taxes, while the amount taken from the rich is negligible from their perspective. Therefore, the net effect on the economy will almost always be worse than not taxing. Times when it doesn't have an effect is when the overall tax level is so small that it's impact is negligible or when the average wealth is so high that no one is worried about a little extra tax.
On the other hand, progressive taxes may have a net benefit on the economy. A progressive tax is one that takes more from those who have more, whether due to being based directly on income or targeted at things that the wealthy purchase more. These are taxes which do what you said, take accrued wealth from those who have a lot of it, and re-inject it into the economy. This doesn't take into account just how good the government is at spending the money, how much of a tax burden the wealthy are already under (not really a problem in the USA), or what the wealthy were doing with that money in the first place (hint: most of them aren't keeping it under a mattress - they don't make them big enough). Of course, if a progressive tax is large enough, there is a good chance it will harm the economy, from tax evasion and all the burdens that entails, and other possible issues I can't bother thinking about right now.
Now for the final point. Which of those tax types do you think a gas tax falls under? That's right, regressive. Even more ironically, which end of the spectrum do you think you will find those who are buying electric vehicles and, hence, paying less of those taxes? Once again, those with more money than average.