<i>&gt; &quot;This approach already occurs, Musk said, citing how taxes are higher on cigarettes and alcohol than fruits and vegetables&quot;</i><p>This is a good point, but generally discouraging the use of cigarettes or alcohol through taxation only effects people who consume those products. If you raise the tax on carbon, that cost could be passed on by businesses in unexpected ways. If the cost of me shipping vegetables across the country goes up by 2%, I&#x27;m just going to increase what I charge for shipping by at least 2% and the cost could well be passed on directly to consumers. Eventually I might be outcompeted by someone who has a fleet of electric trucks. Maybe, at some point. But until that happens, people could end up paying slightly more than they do now for essentials.<p>Maybe this effect is covered in the policy details or by the term &quot;revenue neutral&quot;. Either way a carbon tax is probably a good idea, but the chain of cause and effect isn&#x27;t so clear.