Daniel — Not sure I know what you mean “let go of the revenue.” If the government did not “let go” of the revenue, that would reduce the national debt, which many people would think was good, although I think it is unlikely. Alternatively, they could “let go” of the revenue by reducing other taxes, which I agree would be good. Third, they might “let go” of it by giving it back to the people who paid the taxes in some kind of Citizen Dividend. That would be OK, too.
I would be interested to know, what do you think will happen to the revenue from a hypothetical carbon tax?