Fiscal Neutrality

Fiscal Neutrality

A situation in which a government does not use tax incentives to encourage or discourage behavior. Fiscal neutrality especially refers to a balanced budget because it requires neither the government borrowing of a budget deficit nor the investment of a budget surplus.
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But with the political clamor for public spending cuts now subsiding, even within the Tea Party, US fiscal policy has shifted into neutral - and fiscal neutrality brings 3.
The government has yet to answer the question of where the additional e1/450 million a year will come from, since the updated Troika programme calls for fiscal neutrality in its implementation," said AKEL's Andreas Fakontis, chairman of the Labour committee.
30 It is estimated that Saudi Arabia needs the price of oil to be at about $100 per barrel to achieve fiscal neutrality.
Fiscal Neutrality in a Business-to-Business Context.
The High Court has supported the original ruling that the inconsistent application of VAT to interval bingo and gaming machines contravened the European Union's principle of fiscal neutrality.
The judges' decision supports last year's rulings by the VAT & Duties Tribunal that the inconsistent application of VAT to interval bingo and gaming machines by HM Revenue & Customs contravened the EU principle of fiscal neutrality.
Osborne has stuck rigidly to fiscal neutrality in his Autumn Statements and Budgets, to ensure that spending is matched by cuts or increased tax revenues.
It is possible to achieve Fiscal Neutrality through a combination of fees and taxes, and the choices, depending on many factors, may have an impact on consumer prices.
What you get in Jersey is the fiscal neutrality, you don't have double taxation," C he added.
These are potential breaches of the EU principles of equality of treatment and fiscal neutrality amongst retailers selling similar products that fulfil the same purpose.
This brings about a positive correlation between taxes and consumer spending which biases the coefficient of the tax variable towards zero and therefore in favour of fiscal neutrality hypothesis.
These taxes need not have serious long-term impacts if other taxes are reduced to maintain fiscal neutrality.