How the Carbon Tax Debate Is Reshaping Fiscal Policy

In this episode of The Tax Policy Podcast, Lucas and Luna tackle the carbon tax debate from a fiscal perspective, zeroing in on Canada's federal backstop program as a case study. They explain how a carbon tax works mechanically—who pays, who gets rebated—and why economists across the political spectrum often prefer it to regulations or subsidies. Lucas points to the Canadian example, where households in most provinces receive quarterly 'Climate Action Incentive' payments that, for low-income families, exceed what they pay in direct fuel costs. Luna questions whether the policy is politically sustainable given rising pushback, and they explore the tension between economic efficiency and political viability. The episode ends with a look at the EU's Carbon Border Adjustment Mechanism and what it means for global trade. No jargon, no spin—just the numbers that matter. #CarbonTax #FiscalPolicy #Canada #ClimateActionIncentive #Economics #TaxPolicy #LucasAndLuna #FexingoBusiness #BusinessPodcast #TaxReform #CarbonPricing #ClimatePolicy #CarbonBorderAdjustment #EU #CBAM #EconomicEfficiency #RevenueNeutral #Subsidy Keep every episode free: buymeacoffee.com/fexingo