Congress is considering a carbon dividend paid to all Americans earning less than $400K per year funded by a carbon tax. That would be great way to reduce pollution while increasing incomes for most Americans:https://www.nytimes.com/2021/09/24/us/politics/carbon-tax-democrats.html …
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It would effectively be a consumption tax, and therefore regressive.
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Not correct. The progressivity depends entirely on the size of the rebate and who gets it. The carbon rebate and tax can be made as progressive, neutral, or regressive as we choose.
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