Design Your Own Carbon Tax
We have explored two options for a carbon tax: using it to replace the personal income tax and using it to replace FICA taxes. Other options are available.
You could use a carbon tax to balance the budget or even pay down the national debt.
You could use a carbon tax to finance a Citizen's Dividend.
You could use it to finance a new government program such as a mission to Mars, country club memberships for left handers or a Clinton Monument.
Below, I have provided several carbon tax calculators for your convenience. These calculators give their results in a new window. If nothing appears to happen, shuffle your windows around. The result window might be underneath.
- Derivation of carbon tax rates and resulting retail price increases assuming no conservation.
- Effect of conservation on required carbon tax rates, and the retail energy rate implications.
By Desired Revenue and Monthly Rebate Rate
This calculator works much like the calculations you have already seen. But instead of me deciding how much revenue to raise in order to replace the personal income tax or FICA, you get to decide. Just enter the amount you think the government needs from a carbon tax (in billions of dollars).
Also, you can make your carbon tax more progressive by rebating part of it as a free monthly check to all 300 million citizens using this calculator. In fact, you could give all the money back as a rebate if you desire. Just enter 0 for the desired revenue.
By Desired Revenue and Percentage Rebate Rate
This calculator is similar to the one above, save that we express the rebate in terms of a percentage of the gross revenue. In order to avoid a ill conditioned set of parameters, desired revenue is gross revenue raised, not net revenue received by the government.
By Carbon Tax Rate and Percentage Rebate Rate
This calculator is rather different. Instead of determining tax rates based on desired revenue and rebate, we as how much the government can collect/give back given a carbon tax rate and a rebate percentage. Think in terms of dollars and cents when setting the carbon tax rate. A dollar carbon tax rate is quite up there.