Paying for Planning

This report encourages the use of the revenue from corrective taxes to go towards a public benefit related to the issue the tax addresses, as support for the tax often increases. Corrective taxes - examples are cigarette, alcohol, or carbon taxes - are typically regressive, so policy should support supplementary actions or systems that would directly benefit those hit harder by the new tax. Revenue from the taxes should be used to offset the tax burden and the costs of the taxed activity and pursue the same goal as the tax and other public goals.