Revenue Neutral Tax Definition

The rate is required to be calculated and published by local governments but need not actually be adopted for the coming fiscal year.

Revenue neutral tax definition. 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. If someone s taxes are. By changing the daily behavior of every consumer investor and enterprise such fees would dramatically reduce emissions of carbon. A state with no corporate income tax must levy other taxes to finance government.

For instance a revenue neutral provision may require individuals to pay less tax but corporations will pay correspondingly more taxes. By jonathan marshall and robert archer ccl economics policy network the most sophisticated economic models available today tell a consistent story about the likely impacts of levying a national fee on fossil fuels. Reforms to this tax treatment can make it more neutral with regard to some decisions like how much insurance to purchase while providing more incentive to purchase basic insurance. But any revenue neutral tax reform scheme can by definition only shift taxes not lower them.

It is intended to make the property tax reappraisal and rate setting process more transparent but instead it often muddies the waters. The political appeal of a revenue neutral carbon tax is clear. As a result these states may have a higher property tax which penalizes businesses requiring large investments in plant and equipment. 10 fast facts about revenue neutral carbon fees.

The tax provides an incentive to reduce fossil fuel use and the revenue neutrality reducing income or other taxes in amounts more or less equal to the amount of carbon tax revenues that the government receives makes the whole exercise rather painless. While a zero corporate income tax is in one sense neutral by definition in a broader sense it is anything but. Revenue neutral tax reform implies that it entails no tax increases. The winners would pay less in taxes and the losers would pay more in taxes.

Revenue neutral tax proposals by definition create winners and losers. The revenue neutral tax rate is a bundle of contradictions. The revenue neutral tax rate is a bundle of contradictions.