Because carbon taxes can be regressive and hit low-income groups harder, this regressive impact would be offset with income tax credits, cuts, or refunds. And as the cost of buying gas or heating a home goes up with the new carbon tax, similar tax offsets would be available to everyone.
This market-driven solution would replace the need for complicated, direct regulations on consumption, emissions, and production of dirty hydrocarbon fuels. It’s obvious the current plan of ineffective regulations isn’t working; but because this simple plan would require an act of Congress, don’t expect anything to change any time soon.
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