I thought the fundamental idea was to reduce carbon emissions. If the state doesn’t want the money, it can reduce plenty other taxes or debt. Or provide more services.

All solutions other than punishing fossil fuel use seem like “I want to feel like I did something, but not actually make any sacrifice” solutions so the public doesn’t revolt. See also plastic recycling.

The standard response here is “well what about poor people?”

And the standard response to that is “if a different fundamental problem is some people are too poor, then give them cash”

Less obfuscation and more transparency is always better.

Just put a vehicle registration fee equivalent to the lifetime carbon tax on new ICE cars sold after a given deadline. After X years, start charging the carbon tax on registration fees for older cars as well if a car’s ownership is transferred. Use revenue from those fees for buybacks.

Fuel should be heavily taxed to encourage better mpg and less driving.

One approach is to balance the tax with a mileage deduction.

No increased cost for existing owners, but still an incentive to replace the car for a lower emission one