Neutral Taxes

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Neutral Taxes

A tax structure that does not change the incentives in the market. Neutral taxes are rare; for example, a sales tax may encourage people to shop on the black market (to avoid paying the tax). Likewise, an income tax may encourage persons not to work, so as to reduce their income. An example of a neutral tax is a poll tax.
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We've kind of lost that argument in recent years because many Republicans, including many in Washington, now simply argue for revenue neutral tax reform, which stimulates nothing," Paul said.
The report does not acknowledge that the supposed BEPS problem really is a function of high tax rates in some nations, nor does it discuss how tax compliance automatically would improve if nations moved to neutral tax regimes that ended tax system distortions, such as the double taxation of corporate earnings.
True tax reform would end these biases by adopting a saving-consumption neutral tax, such as a cash flow tax, consumed-income tax, or Bradford X tax.
Provide for a neutral tax treatment of savings and investment;
The GCC does not have cascading taxes that have to be removed and replaced by a neutral tax," said Jitendra Gianchandani, chairman of Jitendra Consulting Group.
This provides for a unique legal and neutral tax system that can provide significant wealth planning opportunities for the international investor.
14) Economists have long tried to design a neutral tax in a way that resembles a market price (Rothbard 2004a, pp.
The golden approach is exemplified by competitive corporate tax rate relief, aimed at achieving a more neutral tax system with respect to tax burdens on business activities.
Furthermore, the Supreme Court has ruled that an indirect financial benefit provided through a religiously neutral tax is not unconstitutional.
Representatives from the state and local organizations emphasized the importance of developing fair and neutral tax policy to provide for equal competition in the free market economy.
He added: "It's meant to be this neutral tax but it won't be, particularly in engineering manufacturing, because of the diversity of what engineering means.