Fiscal Neutrality
The idea that a tax should not distort economic behaviour. For example, income tax may influence the number of hours a worker is willing to work. This is an example of a tax that influences people's behaviour.
Fiscal neutrality
When the net effect of taxation and public spending is neutral, neither stimulating nor dampening demand.
See also Tax Freedom Day, tax law, taxation in the United States, dividend tax, fiscal neutrality.
 See also: Poll tax, Fiscal policy
  
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