GP's point was "tax the fuel". It doesn't matter what the govt does with the revenue - for my pov, current taxes on fuel don't compensate the huge externalities and side costs of it: Half the police is dedicated to roads, half the city space is roads and parkings, 75% military is attacking petrol producers, we have cancers and asthma, and the global warming will cost us natural disasters and economical inequalities. If we integrated that cost to the gallon of petrol, which would only be fair, the gallon would be 5x or 10x more expensive, and we'd watch the economy innovate, as GP said.
First we can immediately lower the income tax. Second, the current price is actually a loan on all of the victims. Third, the tax can progressively increase along the months, so industries can plan exactly when their renewable products will be market-competitive.
