Revenue Neutral Definition In Business

In total there are 18 business only tax expenditures that revenue neutral reform may attempt to eliminate on both the corporate and individual side of the tax code.

Revenue neutral definition in business. Revenue neutral law and legal definition the term revenue neutral implies changes in the tax laws that result in no change in the amount of revenue coming into the government s coffers. In fact our model estimates that a 1 46 value added tax would provide enough revenue on a dynamic basis to replace the corporate income tax in full increasing long term gdp by 6 5 and not losing any federal revenue in the long run. Imagine you have two people in front of you an investor who is averse to risk and one who is neutral. The political appeal of a revenue neutral carbon tax is clear.

You can complete the definition of revenue neutral given by the english definition dictionary with other english dictionaries. Therefore even a vat with a rate of less than 5 would be sufficient to eliminate the corporate income tax and stay revenue neutral in the long run. If an investor has a neutral opinion that is he feels that a security or index will neither increase. You offer them two possible investment opportunities.

In other words a tax proposal is revenue neutral if it neither increases nor decreases tax revenues when compared to existing law. Wikipedia lexilogos oxford cambridge chambers harrap wordreference collins lexibase dictionaries merriam webster. The largest of these tax expenditures for pass through businesses is accelerated depreciation for machinery with a ten year value of 111 billion for pass through businesses. For example a provision may require individuals to pay less tax but corporations will pay correspondingly more taxes.

Invest 500 with 100 certainty that it will increase to 550 in one year. Neutral describes an option on a security or market that is neither bullish nor bearish.