I've been reading a little more on a Carbon Tax. One of the downsides to the tax, is that it is a regressive tax ... affecting the poor more than the rich. More affluent sections of the population, would simply be able to pay the credits to fly and drive a big car, whereas the less well off would not be able to afford it.
This is true ... but I believe we need to address inequality at its root cause ... for example by ensuring people have equal access to education & healthcare. Revenue from a Carbon Tax could be used to contribute to this & lower direct taxes on lower-income classes
Some people prefer a carbon rationing scheme, where everyone is rationed the same amount of credits & we have a carbon ration card.
However, a carbon ration card requires us to calculate the amount of carbon in each individual item in our society ... which is open to a lot of distortion. It would basically create a second currency ... people would trade money and carbon separately ... it seems like added complication to me. It would be much easier to incorporate carbon into our existing currency ... by placing a price on Carbon at source by creating a Carbon Tax.
We need to tax Carbon & tax it hard ... currently I think the governments are introducing the idea too slowly for fear of upsetting industry.
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