The term "tax neutrality" refers to at least two quite different concepts. In its most common usage, tax neutrality refers to tax provisions that conform to an ideal tax system. A tax provision that is consistent with such an ideal system is described as "neutral." A tax provision that cannot be reconciled with the ideal system is sometimes referred to as a "tax expenditure" item. I will discuss tax expenditures later in this paper.
Kahn, Douglas A. "The Two Faces of Tax Neutrality: Do They Interact or Are They Mutually Exclusive?" N. Ky. L. Rev. 18 (1990): 1-19.