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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The government shall endeavor to achieve neutral tax treatment between Islamic banking transactions and equivalent conventional banking transactions within the provisions of the National Internal Revenue code of 1997 RA 8424), as amended.
Besides, this revenue neutral tax reform program is not a top of Senate priority because there are other bills that preoccupy their work like the national budget and the tax amnesty bill.
Initial conditions matter, especially as this is a tax cut that stimulates aggregate demand, not a revenue neutral tax reform working primarily on the supply side of the economy.
A revenue- neutral tax changes a country's tax structure but is not intended to increase the overall amount of tax levied.
Yoram Baumann, one of the original supporters of the 1-732 initiative, states on his website that one of his goals in his life is, "To implement carbon pricing, preferably through a revenue neutral tax shift involving lower taxes on things we like (working, saving, investing) and higher taxes on things we don't like (e.g., carbon)."
These rules were developed to ensure an equitable and neutral tax system which allowed the most efficient allocation of resources in an economy.
"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.
Under neutral tax systems, equation (8) indicates that the prices paid by each state's buyers (from sellers in either state) rise to reflect the tax that the buyers' state imposes on their purchases from the other state.
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;
Tax expenditure budgets record the fiscal cost of deliberate deviations from a neutral tax system, particularly measures providing concessional treatment for particular taxpayers or activities, and, in some cases, analyse as well their economic effect and their impact on the fairness of the tax system.