A lot of people ask why carbon permits or taxes should be levied as far upstream as possible. Why tax or auction permits for pumping or importing oil, rather than burning it? One obvious answer is: red tape. Regardless of where a tax is levied, you will pay. But if it is collected at the wellhead, you don't have to have a separate line on every gas receipt under the sales tax. Your local supermarket does not have to buy a major upgrade to it's software, slowing the line you are in as their system crashes, and the checkers switch …
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