Steinglass wants to know why a carbon tax can't replace a payroll tax:
The payroll tax is a tax on human labour; it discourages companies from employing people. A carbon tax is a tax on fuel; it discourages people from using carbon-based fuels. If we shifted our tax structure to tax carbon more and human labour less, we would certainly use less carbon, and we would presumably use more human labour. What are the multipliers showing that this leads to a net loss in production? Why?
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