The purpose of a CO2 tax is reduce emissions and a lot of emissions are not caused by luxury products and services but simple stuff like growing food or driving to work.
Increasing the price of fuel to the point where people switch to biking to work would be very successful from a climate standpoint but extremely unpopular.
Private jets use ridiculous amounts of fuel.
The middle class will drive while the poor take the bus.
It's not as regressive as you'd think.
This can also be offset with tax rebates for those on lower incomes.
Politically the problem is that the wealthy will use every lobbying, legal and propaganda tool to shift the burden off their backs.
Except in most of America, where the poor have to drive as well, and spend a much higher percentage of their income on cars. Evidently most don't mind or are even supportive, because it supposedly buys them freedom (From what? Disposable income?).
I think this is patently false; but even more generally, wealthier people and “developed” countries are the biggest polluters.
(https://www.theguardian.com/environment/2020/sep/21/worlds-r...)