The last I heard the same was true of paper- the demand is very low so much of that set aside for recycling is sent to the landfill anyway.
When I lived in DC for a while, back when Marion Barry was mayor, they had garbage cops that were handing out warnings and citations for not seperating out the trash and recyclables. The trash guys would come around and throw it all in the same truck proving that it was just a scam. Not sure if they still do this today.