But we know this is not true. At almost every level this logic fails. First of all, we know that pricing does not change demand perfectly. Alcohol and tobacco prove it. So too does existing carbon pricing on oil: it has not stopped demand. In other words, this comment fails to take such factors (elasticities as economists call them) into account. So theory and practice do not prove this point. They prove the exact opposite, if anything. It is only regulation that will change demand for carbon: pricing will not, and most certainly cannot on its own.
Prices won’t change demand, eh? Blimey.
As to this:
No one believes that trickle down does or will work. And no one believes that those who promote carbon tax really believe in redistribution of the proceeds.
The standard proposal is that payroll taxes be decreased by the amount the carbon tax raises. Quite why this isn’t progressive is yet to be detailed.