Trust me, given how many people just accumulate trash because it's expensive, that's an absolutely sane and excellent policy. As a society, we want people to use trash disposal, because the alternative is expensive, painful, and disgusting.
You can literally tell which municipalities in my state have been hoodwinked by the Karens into adopting "pay as you throw". They're the ones where there's trash everywhere.
It's like these people can't think two steps ahead (I'd go so far as to say that's the defining feature of regulatory policy in this state). You just gave people a financial incentive to litter and dump.