For example, indoor plumbing was considered a grossly extravagant luxury for almost all of human history. Within the last hundred years, the richer societies have made laws (building codes) that have switched it to a "NEED". The same thing happend with indoor heating systems.
As for food, most medieval European peasants considered themselves lucky if they got a bowl of thin gruel every day. Asian peasants thought they were lucky to get a bowl of rice. Many didn't get anything on many days. Now in the US the government is talking about "food deserts" and shifting many previously "luxury" fresh nutritious foods into the "NEED" category.
Yes, we rather do like preventing dysentery, bubonic plague, and flu epidemics. Public health is indeed a necessity rather than a luxury.
The details of a specific proposal are not relevant. No matter what specific items you choose for these categories, eventually people will want things you say are "extravagant luxuries" and call them "needs".
If you want to play that game living past your 30's is a "WANT" rather than a "NEED". You probably won't find many people who think this particular "WANT" isn't a "NEED".
This is not a game, and I'm not arguing the merits of any specific proposals. It's an empirical analysis of what has actually happened in world history.
Things you think are "needs" today were considered extravagant luxuries for almost all of history, and many of the things you personally view as luxuries will be called "needs" by others. Thus, the parent comment's plan to divide the economy into "wants" and "needs" is not tractable, since these categories are both shifting through time and also heavily disputed from one person to the next at any given point in time.
I am not arguing in favor of this arrangement. I'm pointing out that that's simply the way it actually is, regardless of our personal preferences or judgements of the situation.
With these 2 rules we should see a steady increase in QoL for everyone.
The main problem with the whole idea is that it is inevitable that an exchange rate will be set and they will be traded. What does a NEED collector do with the collected NEED currency?
With ubiquitous computing now available to everyone we might be able to fully track that sub set of transactions with 'currency with state and history' as opposed to traditional 'dumb dollars' but I think it would be a hard problem getting it to play nice with the traditional currency economy.