> you need to specify what is "neutral". > Tom Grey A neutral tax has no impact on economic incentives, thus has a zero marginal rate, and has no effect on labor vs. leisure.
By definition, economic rent is income not needed to put a factor into its most productive use, and thus a tax on economic rent is neutral. > a policy change can be "revenue neutral", clearly meaning total > revenue is the same before, and after, the policy change. That is another type of neutrality, and not what I am concerned with. Fred Foldvary ===== [EMAIL PROTECTED]
