It eventually runs out. Which wrecks the UBI.
Fremstead and Paul 18, *PhD, Assistant Professor of economics at Colorado State University, **Assistant Professor of economics at New College of Florida and a Fellow at the Roosevelt Institute (Anders and Mark, “Disrupting the Dirty Economy,” People’s Policy Project, https://www.peoplespolicyproject.org/wp-content/uploads/2018/09/CarbonTax.pdf)//BB
The net transfers among households are quite large when a sufficiently high tax is put on carbon. The net benefits and costs in Figure 4 are calculated in per capita terms. The average person in the poorest decile would receive a net transfer of about $1,371 and lives in a household of 3.7 people, so their household’s net beefit would be over $5,000 annually. A carbon dividend of this magnitude would enable the poorest households to increase expenditures by 13% and force the richest households’ to cut expenditures by 3%. It is important to recognize that these effects are temporary. Over time, the carbon tax will rise and emissions will fall, which will eventually reduce the size of the carbon dividend. While a carbon dividend mitigates the short-run regressivity of a carbon tax, a carbon tax cannot provide a longrun funding source for a Universal Basic Income.