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I don't think taxing oil consumption is the answer. I think what happens is that any taxes on carbon / fossil fuels just get passed down to the consumer, who ar
by socialist_coder 8y ago
I don't think taxing oil consumption is the answer. I think what happens is that any taxes on carbon / fossil fuels just get passed down to the consumer, who are basically forced to pay it and can do very little to change their energy consumption. Sure, they can buy an electric car, but they still need to power and heat their home. Energy companies make the same profits, families are left holding the tax bill.
- londons_explore 8y agoTaxing consumption of anything like this is normally done combined with something to try to give back the exact same number of dollars to the same people in the same ratio, at least initially. Then nobody is worse off from the tax. Then, anyone who can reduce their usage will end up paying less tax, but still getting back nearly the same amount, and therefore profiting from their reduction. That ideal is hard to achieve, but tends to be done roughly. For example, putting a tax on gas, but then equally subsidising something else related to cars, like car insurance, or the purchase price of new cars, would hit mostly the same people.