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RE: Partial Basic Income through Universal Carbon Dividends

in #basicincome6 years ago

They've certainly covered the point that irks most people about the idea of a carbon tax; that being stopping it going to government. It still raises many more questions though. @michelmake mentions one in the fact that our air knows no borders. I also wonder, if this has the affect that is wanted, the reduction of use of polluting products, then surely we'll reach a point where the tax is no longer generating much income and there goes the partial basic income.

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I see your points, but the same concerns were given about taxing cigarettes and alcohol as a source of revenue. If they reduce usage, then they don't generate as much revenue.

In reality, there will always be some basic level of usage where carbon emissions are profitable, even after a graduated carbon tax. What level the equilibrium settles at will be a matter of experimentation. There would eventually be some level where increasing the tax rate starts to decrease the tax revenue, and that's the level that should be targeted to achieve both objectives.

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