Why does CTC advocate carbon tax shifting?
To avoid burdening the less affluent, carbon tax proceeds should be returned to Americans through an equal, pro rata rebate or dedicated to reducing the tax burden of regressive taxes such as the federal payroll tax or state sales taxes (depending upon whether the tax is imposed at the federal or state level). Shifting the tax burden to pollution and pollution-generating activities will create powerful incentives to use less energy and emit less CO2 into the atmosphere while simultaneously promoting tax equity and minimizing the impact of the carbon tax on those with lower incomes.
