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Where do you get the unquestionably knowledge, that the poor will suffer the most from a carbon tax?
by xorfish 6y ago
Where do you get the unquestionably knowledge, that the poor will suffer the most from a carbon tax?
- mac01021 6y agoWell, they _do_ if the tax is not coupled with a dividend. To a fist approximation, the carbon tax you pay will be a fixed fraction of all the money you spend in daily life. Poor people spend essentially all their income every month. The better off you are, the lower a fraction of your income you have to spend each month. So a poor person will pay X% of their income, while a well-paid software professional might pay X% of 25% of her income. That's regressive. But a carbon fee & dividend, taken as a whole, is progressive, rather than regressive, because the poor receive a dividend in excess of the fee they pay, while the wealthy pay more fees but receive the same dividend.