This is an old but seriously developed idea. The U.S. actually had a significant political "Social Credit" party back before WWII and the Peoples Republic of China TODAY has Social Credit as their official plan of record (and has had for scores of years). Several other countries TODAY have Social Credit Political Parties (but no other country TODAY has it as plan of record for the country except China). It was shot down in the USA as "Communist" just before WWII which it is NOT and never was. That said, Read the book "Social Credit" from the 1920s. Used copies are cheap on Amazon ;->. Or check out a fairly untrue, but approximately true, account on Wikipedia. The scholarly literature, particularly in Economics Theory, is huge, and much progress has been made in laws around capitalism to move toward it. Check out Teddy Roosevelt who I think you may not realize set out to pull your vision off the way to express it. But it has been a continued belief that people have that they are the first to think of this and to politicize it, that has keep it in the gutter..
It stays in the gutter as it did before because stupid people lie effectively because of a fundamental problem with human brains. (Which we can fix too, but won't, need some media regulation to fix it -- every media outlet should have a truthcourt.net).
(read this: https://medium.com/liecatcher/https-medium-com-rhtcmu-fiat-lies-are-genocide-on-the-human-race-a4d76b093530).
I also wrote a book called "No Taxes" based on the same observation which made social credit possible. What makes it possible was first recognized in the late 1800s. It is economic growth.
It turns out the economic growth alone can fund the government (the way you said). The logic is that since the population grows you can incentivize contribution to growth as a way to have no taxes at all.
But, what most people don't realize is that today we could have NO TAXES AT ALL, EVER (no real-estate taxes, sales taxes, income taxes, local or federal or county, etc). NO TAXES is reachable if they understand how to do it -- which is not that hard. It is in my book "No Taxes" on Amazon (written in the late 1990s).
Here is a medium article presenting a lot of this that got zero uptake despite an invited address in Silicon Valley about a year ago. This includes a video of the talk proving I actually gave it. This talk also has all the references above.
No Taxes, I suggest, is a good place to start.
