There is a carbon tax proposal in Vermont known to its proponents as The ESSEX Plan. The plan proposes that the revenues raised from the excise tax on fossil fuels (after state expenses) would be given in part to electric utilities to lower customers’ electric rates, and in part to low-income and rurally located Vermonters via a rebate scheme.
The Ethan Allen Institute has put together a series of “household profiles” to provided specific examples of how the tax would impact real families. So far, EAI’s findings show that even with maximum allowable rebates, low-income Vermonters fail to break even. With carbon taxes on the agenda in several states, these findings may be helpful.
Ethan Allen Institute president Rob Roper and Patrick Gleason of Americans for Tax Reform co-wrote an article on carbon taxes recently featured in the Orange County Register.