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It depends. You could, for example, make high carbon taxes while reducing income taxes or dividending the money back to people. This would let you have more of
by graeme 7y ago
It depends. You could, for example, make high carbon taxes while reducing income taxes or dividending the money back to people. This would let you have more of a carbon blocking effect while keeping government revenues steady.
If you use the money for a specific purpose, then you either need low carbon taxes to avoid radically altering the government’s role in the economy, or you are making a large bet that the government will spend the money well.
Having a large, long run carbon tax will do much to encourage the market to develop alternatives.
- pochamago 7y agoI imagine you include deductions, like most tax systems, with actions like planting trees being counted against your emissions. For many businesses that would be a more effective way to spend, and likely more efficient than the government middle man doing the work