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Tax buoyancy
A measure of how rapidly the actual revenue from a tax rises (including that due to any change in the tax law) as the tax base rises. It is defined, like an elasticity, as %R / %B where R is the real revenue from the tax, B is the real tax base, and % is percent change. It differs from tax elasticity in not holding the tax law constant.
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- Part of Speech: noun
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- Industry/Domain: Economy
- Category: International economics
- Company: University of Michigan
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