Paying Dividends to American Residents from Carbon Fee Revenue

The Carbon Dividend is one of the three legs of our policy, so it’s important to get it right. CCL commissioned an expert study to address the implementation of the Dividend portion of the CCL proposal. The resulting paper, entitled “Paying Dividends to American Residents from Carbon Fee Revenue” analyzed two possible methods of paying out the Dividend, developed workflow and documentation methods, and explored several of the potential challenges that will be faced in achieving the program goals of getting Dividends to as many residents as possible with maximum transparency and minimum cost.

Highlights of the study

Delivering the Dividend to just about every American household is feasible.

the Dividend to just about every American household is feasible. Direct payment of the Dividend to households is simpler, more stable, and less burdensome than paying it indirectly through wages and/or Social Security benefits.

payment of the Dividend to households is simpler, more stable, and less burdensome than paying it indirectly through wages and/or Social Security benefits. Important details, including forms to apply for the Dividend, specify tax withholding, and reconcile changes in status are fully worked out and explained.

details, including forms to apply for the Dividend, specify tax withholding, and reconcile changes in status are fully worked out and explained. More than 95 percent of Dividends can be paid by direct bank deposits or funds added to government-issued debit cards, keeping costs low.

than 95 percent of Dividends can be paid by direct bank deposits or funds added to government-issued debit cards, keeping costs low. Impacts of several variations to key policy provisions are analyzed for their pros and cons.

The Dividend Delivery Study is an important addition to our portfolio of supporting research, comprising a highly developed, detailed framework to recycle Carbon Fee revenue right back to Main Street. CCL volunteers will benefit greatly by understanding and consulting this excellent resource.