Revenue Neutral Policy Definition

Additionally the revenue policy outlines how budgetary reconciliations are to be attained.

Revenue neutral policy definition. Examining ways that the tax system approximates or departs from neutrality can be a helpful lens for thinking about a range of tax policy and economic problems. The updated revenue recognition standard is industry neutral and. Revenue neutral is the idea that all carbon tax revenues must flow back out the door as other tax cuts typically income tax but also could be in the form of tax credits or a fixed dividend. The political appeal of a revenue neutral carbon tax is clear.

Neutral monetary policy the range for the federal funds rate can go from low enough to stimulate economic growth to high enough to slow economic activity. A sound revenue policy is considered an essential component of any strong fiscal management practice. In some cases people do not trust that this is going to happen as promised. Somewhere between the lows and the highs and economists do not all agree just where is a rate or range of rates that neither stimulates nor contracts the economy.

In other words a tax proposal is revenue neutral if it neither increases nor decreases tax revenues when compared to existing law. Notably the revenue policy outlines proper controls for use in budgeting and forecasting. Tax neutrality is a widely accepted. 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.

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. Fiscal neutrality creates a condition where demand is neither stimulated nor. What the arguments for such a policy structure both pro and con have often lacked is detailed analysis of the performance and design of revenue neutral carbon taxes in the real world. This paper attempts to address.

Fiscal neutrality occurs when taxes and government spending are neutral with neither having an effect on demand.