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pseudonom- | 7 years ago

"Carbon taxes are regressive" is too simple, and I'd argue wrong, for a variety of reasons:

- Some experts just flatly deny it: "low-expenditure households devote a smaller share of their budget to gasoline than do their counterparts in the middle of the expenditure distribution" --- https://dspace.mit.edu/bitstream/handle/1721.1/63747/isgasol...

- Carbon taxes are often less regressive than alternative sources of revenue e.g. sales taxes

- Depends on how the revenue is spent. If, for example, it's used to expand the Earned Income Tax Credit in the US, the overall tax and spend pattern would be progressive.

- The impacts of excess carbon are also "regressive" in that global warming affects poor people more severely. This means that the net effect of a regressive tax which reduces a problem with an even more regressive incidence could be progressive.

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