Tax Neutrality
/ˈtæks ˌnuːtrælɪti/
Definitions
- (n.) The principle that tax systems should not distort economic decisions or influence the allocation of resources.
The government aimed for tax neutrality to avoid favoring certain industries over others.
- (n.) The condition where a tax does not affect behavior or market outcomes.
Tax neutrality ensures that investments are made based on economic merit rather than tax advantages.
Forms
- tax neutrality
Related terms
See also
Commentary
Tax neutrality is a key concept in fiscal law aiming to design tax rules that minimize market distortions; drafters should clearly distinguish between neutrality in form and in substance.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.