THE IMPACT OF FISCAL NEUTRALITY IN THE GLOBAL FINANCIAL CRISIS

Abstract

By fiscal neutrality we understand the objective of not influencing (economic) decisions of domestic and supranational investments, so that they are unaltered or minimally affected by taxation. In this perspective of fiscal neutrality refers to the taxed subject, both as individual as an enterprise as well as a corporation. Fiscal neutrality, intimately linked to this individual concept, it serves as base for international fiscal policies, putting in evidence questions of protection of national budgets trough taxation of national and foreign revenue. In this optic, the concept of fiscal neutrality is intrinsic to the current global financial crisis – an unbalancing of national budgets. In focusing on taxation the question put forth is if the basic principles of international fiscal neutrality and fiscal competition may help meliorate the current global financial crisis.