The previous federal government in Australia introduced something along these lines: a carbon tax designed to be revenue-neutral. Compensation for lower income earners was worked into the income tax system (some also went directly to certain highly-exposed export industries).
Unfortunately thanks to incompetence in how this plan was sold by the previous government and an aggressive campaign against it by the opposition, that government lost the following election and now we have the worst of all worlds: carbon tax repealed (the only country going backwards in this regard AFAIK), compensation retained (the incoming government being too spineless to scrap it, despite themselves declaring a budget emergency) and a new braindead "direct action" policy where we now give tax dollars to polluters to encourage them to tone it down (stupidly inefficient and another hit to the budget).
Unfortunately thanks to incompetence in how this plan was sold by the previous government and an aggressive campaign against it by the opposition, that government lost the following election and now we have the worst of all worlds: carbon tax repealed (the only country going backwards in this regard AFAIK), compensation retained (the incoming government being too spineless to scrap it, despite themselves declaring a budget emergency) and a new braindead "direct action" policy where we now give tax dollars to polluters to encourage them to tone it down (stupidly inefficient and another hit to the budget).
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