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. In other words, a tax proposal is revenue neutral if it neither increases nor decreases tax revenues when compared to existing law. For instance, a revenue neutral provision may require individuals to pay less tax, but corporations will pay correspondingly more taxes. The concept was the decisive factor in drafting the Tax Reform Act of 1986 “whereby provisions estimated to add revenue were offset by others estimated to reduce revenue, so that on paper the new bill would generate the same amount of revenue as the old tax laws.”
Legal Definition list
Related Legal Terms
- Accumulation plan [Internal Revenue]
- Actuarial Present Value [Internal Revenue]
- Airport Revenue [Aeronautics and Space]
- All Substantial Rights to a Patent [Internal Revenue]
- Alternate Payee [Internal Revenue]
- Approved Terminal or Refinery [Internal Revenue]
- Architectural and Transportation Barrier Removal Expenses [Internal Revenue]
- Armed Neutrality
- Brother-Sister Controlled Group [Internal Revenue Code]
- Commingled Fund [Internal Revenue]
