Obama's Cap and Trade Redistribution Plan

http://www.taxfoundation.org/blog/show/24408.html
by Scott A. Hodge

...Rather than propose a pure carbon tax as Dion did, President Obama's new budget proposes a cap and trade regime to control carbon emissions...  ...Aside from the goal of redistributing income, one of the rationales for giving the climate revenues back in tax cuts is to reduce the pain consumers will feel from the higher priced carbon-based goods. This, of course, raises an interesting point about the effectiveness of making the climate tax painless because of the offsetting tax cuts...