What Does Revenue Neutral Basis Mean

And because gst is a value added tax it is expected that tax collection would fall when it comes into effect.

What does revenue neutral basis mean. 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. House ways and means committee chairman dave camp r mi and house budget committee chairman paul ryan r wi meanwhile have endorsed revenue neutral tax reform in name but have identified only. In other words a tax proposal is revenue neutral if it neither increases nor decreases tax revenues when compared to existing law. The revenue neutral tax rate is a bundle of contradictions.

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. The rate is required to be calculated and published by local governments but need not actually be adopted for the coming fiscal year. December 2 2015 last updated december 2 2015 because gst removes the problem of tax on tax and cascading effect of various taxes. Gst and revenue neutral rate first published.

The political appeal of a revenue neutral carbon tax is clear. 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. That was the professors directive and to an extent it was their focus. It is intended to make the property tax reappraisal and rate setting process more transparent but instead it often muddies the waters.

10 fast facts about revenue neutral carbon fees. Subject to the terms of the grant notice including the agreement and the plan 50 of the award shall be based on the fx neutral revenue as defined below during the performance.