Post by huon on Feb 11, 2023 5:32:50 GMT 9.5
Kyle Pomerleau, Elke Asen
06 Nov 2019
Tax Foundation
taxfoundation.org/carbon-tax/
" A carbon tax paired with a cut in the employee-side payroll tax increases progressivity, output, and employment." Key finding #5
So let's use most of the carbon tax revenue to lower the payroll tax, with minor portions going towards targeted dividends and clean-energy R&D. Such a use of the revenue would be economically benign--and perhaps politically attractive.
Have a look at the Tax Foundation article above, especially the 'Summary of Results' table near the end. This table will be useful not only in scoring current plans, but also in designing and scoring a new plan.
Now, those on the right, especially, will dislike the economic harm and 421,000 lost jobs in the the 'Carbon Tax and Dividend' plan. And those on the left, especially, looking at the 'Payroll' plan, will balk at the anemic compensation levels for low-income households. Both plans will face a decidedly uphill battle for adoption in a divided government.