Re: Neutral taxation? with respect to what?

[Anton Sherwood]

Tom Grey wrote:

Thus, increasing a land tax and decreasing other local taxes can be
revenue neutral, (and I would support such a change) but insofar as

> it will encourage some behavior and discourage other (eg idle land
> will cost more), it is NOT "incentive neutral".

Reducing dividend taxation will encourage more companies to pay out

> dividends, and more capital investment (stock price increases) in
> those companies that do pay more out (often not tech companies).

I think Fred is concerned with incentive-neutrality as compared with no tax at all, rather than with an existing tax regime.

--
Anton Sherwood, http://www.ogre.nu/