Quote:
Originally Posted by CaptainCrunch
To add to the above. Even if this tax goes into play which forces up general costs which are passed on to the consumer. Even if these companies change their ways, reduce their carbon footprints and reduce their costs, there's nothing to force them to reduce their prices, they'll just increase their profits.
Any kind of general taxation like this even if they call it Revenue Neutral will impact someone in a non neutral way and force ripples to the whole economy. And baby it may effect the rich and upper middle class, but it will destroy the poor and lower class.
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Strange part is that there is going to be a cost transfer from income taxes to monthly gas bill. Rather than try to dodge income taxes, people will try to reduce monthly gas taxes by reducing what they are burning. This is going to end up being a regressive tax......guess which tax bracket is going to be able to afford to put in new efficient windows, better furnaces, and a solar panel on their roof?
And then what if the overall effect of the carbon tax does reduce usage....that will reduce revenues for the gov't so they will have to go back and increase income taxes again to make up the difference.