U.S. Carbon Tax Swap

And here I thought I had such a neat idea, when someone else already thought of it, and did a pretty in depth analysis of it: enact a carbon tax, along with a cut in the payroll tax. The tax cut is used to counter the regressive nature of the carbon tax (the tax cut is progressive), as well as to avoid hurting economic growth. Read the paper by Tufts economist Gilbert Metcalf here.