Mike- A brilliant piece. I completely agree with you. Tax carbon and give the proceeds back to the American people. That is almost a “perfect” tax as the taxed citizens will have a say and will be the driver to increasing the tax.
The other important aspect of your position is that in the decades ahead, we will have to find creative ways to tax/pay out subsidies to citizens as we go through the economic disruptions that both climate change and AI will bring to society.
I think one additional point that will need to be made in the current political environment is that applying the tax to the imports of countries that do NOT have a carbon tax will please all sides in the trade debate. And, since we are the largest market, this will quickly make other countries implement a carbon tax as well.