proposed carbon tax ... surely not!

I am truly struggling with the proposed carbon tax ... is this interpretation right?


# polluting businesses get slugged a carbon tax

# the polluting businesses shrug off the carbon tax by raising prices (probably a tad more than justified)

# the govt collects the carbon tax and gives some of it to low income earners to compensate for the higher cost of polluting services and keeps the rest in consolidated revenue to spend on whatever they see fit whenever they see fit

# middle and higher wage earners pay more for polluting services which include the big one, electricity ... because of inelastic demand they do not curb their use of such services

# the low income earners do not curb their use of polluting services as they have been compensated for the higher prices

# so, the money goes around, government becomes "bigger" and there is little/no change in the consumption of polluting services

Is that it in a nutshell?

Surely not !

Dex