UBI doesn’t fix the impacts on the economy associated with the carbon tax --- it’s a net negative

(Congressional Budget Office, “Effects of a Carbon Tax on the Economy and the Environment,” pg online @ https://www.cbo.gov/sites/default/files/113th-congress-2013-2014/reports/Carbon_One-Column.pdf //um-ef)

Using the Revenues to Offset Effects on Certain Groups. As noted above, the burden of a carbon tax would fall disproportionately on low-income households, workers and investors in emission-intensive industries, and people in areas where the local economy relies on such industries or on electricity generated from emission-intensive fuels. Lawmakers could partly or fully offset the burden imposed on those groups by returning some or most of the carbon tax revenues to them through tax credits or other programs. For example, carbon tax revenues could be directed to low-income households in the form of fixed (lump-sum) payments. (Households who are eligible for benefits under the Supplemental Nutrition Assistance Program, formerly known as the Food Stamp program, could receive an additional fixed amount of benefits, for instance.) Such payments could help offset the increase in living expenses that those households would experience because of a carbon tax.30 However, unlike using carbon tax revenues to reduce deficits or marginal tax rates, using them to provide relief from the tax’s effects on certain groups would generally not lessen the total economic costs of a carbon tax, including the reduction in total output. For example, lump-sum payments to low-income households would not provide benefits to the broader economy under normal economic conditions, because those payments would not increase people’s incentives to work or invest and thus would not lead to greater economic productivity.31 Conversely, using the revenues to cut marginal tax rates on corporate or individual income would benefit the economy more broadly but would probably have limited value to low-income households, who typically owe little, if any, income tax. As a result, lawmakers could face a trade-off between using carbon tax revenues to minimize the tax’s adverse effects on the economy as a whole and using them to minimize the tax’s impact on disproportionately affected groups.