> Again, tax the carbon at the source and it won't matter weather it's refined, burned directly, or turned into plastic products, carbon out of the ground will all be taxed at the same rate to discourage it's unearthing.

Doesn't that create the wrong incentives? Digging up carbon and using it to make stuff that is kept around indefinitely / recycled into more stuff / buried when life-expired should be fine - it's putting it into the atmosphere that we want to discourage.

(Also there should be a positive incentive for taking carbon out of the atmosphere permanently).