Carbon tax would hit poor the hardest, CBO finds

The analysis made no recommendations. Still, it was published as some conservatives and Democrats say a carbon tax could address climate change and generate revenue that would allow lower tax rates.

CBO found that of seven options to mitigate the regressive nature of a carbon tax on low-income households -- including lower tax rates -- all but one would preserve the incentive to reduce carbon emissions. But only three, CBO said, would prompt employment and savings.