SolarAcademy

Weighing the refunded carbon tax

One rising idea about carbon taxes is to refund the tax revenue to voters. The reasoning is that it would still do its main job – discourage carbon-intensive activities – while muting political opposition given that the positives would hit the lower half of the income scale. The intention with this refunded carbon tax is something like large-scale wealth redistribution from the biggest fossil fuel users to middle- and working-class folks. Response to the idea is mixed.

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