Quote:
Originally Posted by iggy_oi
Wouldn't passing the cost onto the consumer be counter productive? I mean if no one can afford to pay for their goods and services wouldn't they be just pricing themselves out of any business here? Is it not plausible(sensible?) that companies would rather take a small hit(like their consumers are) to continue to make money rather than try to continue keeping their profits at the same level while decreasing their customer base?
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If costs aren't passed on to the consumer then how would a carbon tax encourage consumers to make reduced carbon purchases. The entire point of a carbon tax is to make things more expensive. If people can't afford it they won't consume it. So the lower class needs subsidies to stay in housing, the middle class reduces diversionary spending, the upper middle class flies less.
And if everything is more expensive you need the wealthy to susidize the poor more as the wealthy can afford it. To argue that a carbon tax won't make everything more expensive is to argue that it won't work