The problems with carbon taxes are not limited to the fact that they’re regressive at this post at RealClearEnergy by Kevin Mooney correctly points out. It’s that carbon emissions increase with income. That means that the tax falls heaviest on those least able to limit their carbon emissions. That’s why this strategy:
But a leaked list of what Democrats on the U.S. Senate Finance Committee call “carbon pricing” within the proposed $3.5 trillion reconciliation package now gestating on Capitol Hill provides critical insight. The Senate Democrats are looking at “a per-ton tax on carbon dioxide of leading fossil fuels (e.g., coal, oil, natural gas) upon extraction, starting at $15 per ton and escalating over time…” and “a tax per ton of carbon dioxide emissions assessed on major industrial emitters (e.g. steel, cement chemicals)…” and “a per-barrel tax on crude oil,” according to the document.
isn’t the right one. The right one is along the lines of something I’ve mentioned before: a much higher tax with varying prebates that decrease with income.