[Gibbon1]

> I've always been told that the best way to do a pigovian tax is to make it revenue neutral. You collect the sin tax, but then your redistribute it based on the average level of tax collected.

You were lied to. The best sort of pigovian tax scheme, you collect the tax from those that can pay it. And use the money to help those that can't do what you need them to do.

AKA. Put an excise tax on new gasoline cars. Because someone that can afford a new car can certainly pay the tax. Do the same with business leasing cars. Use the money to fund programs to get poor people out of their gasoline cars and into electric ones.

A gas tax on the other hand will be perceived correctly by poor people as a rubber hose that hurts them a lot. And wealthy not at all.