Revenue Neutral Economy Definition
In other words a tax proposal is revenue neutral if it neither increases nor decreases tax revenues when compared to existing law.
Revenue neutral economy definition. The revenue neutral aspect of the rntr refers to the aggregate tax burden for the entire jurisdiction not the tax burden for individual taxpayers. See synonyms for revenue neutral adjective of a change in taxation policy that does not alter overall tax revenue usually because it is offset by corresponding cuts or increases. 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. If a taxpayer s real property appreciated in value more than did the local government s real property in the aggregate then that taxpayer s tax bill will increase if the rntr is adopted.
Fiscal neutrality describes the state in which taxes and government spending are equal.