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I was going to criticize this, but they actually sum up my complaint themselves: > Several planned carbon tax policies have been rejected by the public because
by ZeroGravitas 3y ago
I was going to criticize this, but they actually sum up my complaint themselves:
> Several planned carbon tax policies have been rejected by the public because they put a high burden on low-income households.29,30 However, carbon taxes can even decrease poverty and inequality if revenue is redistributed appropriately. Lump-sum recycling of revenues, for instance, is progressive because the amount of money received by low-income households is much higher relative to their income than it is for high-income households.27,31
Why go to the extra trouble of deciding what is luxury and what is not when you can either just return the money raised on a per capita basis or offset currently regressive taxes?
- PaulHoule 3y agoThat’s a good idea which might make carbon taxes more palatable. That is, you can make them revenue neutral by cutting other taxes and deal with any equity issues directly. I think it is little understood how effective the Earned Income Tax credit has been in the U.S.