How much revenue will carbon taxes generate?
A lot, if the taxes are set high enough to have the needed impacts. A federal “starter” carbon tax equating to 10 cents a gallon of gasoline, but applied to all U.S. fossil fuel burning, will bring in roughly $55 billion a year in revenue. This equates to around $180 per U.S. resident, or $720 for a family of four. (Thus, a family that paid less than $720 a year under this starter tax would come out ahead if the carbon revenues were rebated equally.) Successive carbon tax installments adding the same 10ยข/gallon equivalent would each add another $50 billion or so to the aggregate annual revenue stream. By the end of the tenth year (assuming annual installments), the annual revenue would be on the order of $500 billion.
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