Progressive vs Regressive Carbon Tax
“How can we make a carbon tax more equitable?”
Carbon taxes are a hot topic in the energy community. Although it is touted as one of the most efficient and bipartisan ways to combat climate change, an improper implementation can result in massive inequalities. If it ends up taxing lower income individual individuals more such as a gas tax, then it would be considered a regressive tax. If it taxes wealthy individuals more, such as a tax on boat oil. Then it would be considered a progressive tax. When implementing such solutions, governments must consider if it is a Progressive vs Regressive Carbon Tax.