According to a Congressional Budget Office report, the burden of a carbon tax would fall isproportionately on low-income households.
a. What does the report mean by the "burden" of the tax?
b. Why would the burden of a carbon tax fall disproportionately on low-income households? What actions might the government take to reduce the burden on these households?
Source: Congressional Budget Office, "Effects of a Carbon Tax on the Economy and the Environment," May 2013, p. 8.