I don’t think that solves the issue they want to fix. The issue is brands that are stylish destroying clothing that’s now out of style (preserving brand value).

The price point is already high enough that taxing raw materials doesn’t really push the needle on price, they’ll just pass the costs on.

Utilitarian brands already don’t want to destroy clothing because their customers are price sensitive.

This forces the brands to do something with excess clothing. I suspect they’ll do whatever is the closest to destroying the clothing, like recycling them into rags or shredding them for dog bed filler or something. Maybe even just recycling them back to raw fibers.