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.