Tax Buoyancy Calculator

✖Change in Tax Revenue is the percentage increase or decrease in total tax income over a specific period, typically comparing it to the previous period.ⓘ Change in Tax Revenue [%ΔR]			+10% -10%
✖Change in GDP is the percentage increase or decrease in the total value of goods and services produced within a country's borders over a specific period, usually compared to the previous period.ⓘ Change in GDP [%ΔGDP]			+10% -10%

✖Tax Buoyancy is an indicator to measure efficiency and responsiveness of revenue mobilization in response to growth in the Gross domestic product or national income.ⓘ Tax Buoyancy [TB_y]

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Formula

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Tax Buoyancy

Formula

`"TB"_{"y"} = "%ΔR"/"%ΔGDP"`

Example

`"5"="20"/"4"`

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Tax Buoyancy Solution

STEP 0: Pre-Calculation Summary

Formula Used

Tax Buoyancy = Change in Tax Revenue/Change in GDP
TB_y = %ΔR/%ΔGDP
This formula uses 3 Variables

Variables Used

Tax Buoyancy - Tax Buoyancy is an indicator to measure efficiency and responsiveness of revenue mobilization in response to growth in the Gross domestic product or national income.
Change in Tax Revenue - Change in Tax Revenue is the percentage increase or decrease in total tax income over a specific period, typically comparing it to the previous period.
Change in GDP - Change in GDP is the percentage increase or decrease in the total value of goods and services produced within a country's borders over a specific period, usually compared to the previous period.

STEP 1: Convert Input(s) to Base Unit

Change in Tax Revenue: 20 --> No Conversion Required
Change in GDP: 4 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

TB_y = %ΔR/%ΔGDP --> 20/4

Evaluating ... ...

TB_y = 5

STEP 3: Convert Result to Output's Unit

5 --> No Conversion Required

FINAL ANSWER

5 <-- Tax Buoyancy

(Calculation completed in 00.004 seconds)

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Credits

Created by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

Keerthika Bathula has created this Calculator and 50+ more calculators!

Verified by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has verified this Calculator and 200+ more calculators!

< 18 Public Finance Calculators

Cost Benefit Analysis

Go Benefit Cost Ratio = (sum(x,0,Number of Periods,(Cash Flow of Benefits/(1+(0.01*Discount Rate))^x)))/(sum(x,0,Number of Periods,(Cash Flow of Costs/(1+(0.01*Discount Rate))^x)))

Marginal Propensity to Consume

Go Marginal Propensity to Consume = Consumption/(Disposable Income*(Revenue-Tax Imposed))

Tax Incidence for Customers

Go Tax Incidence = 100*(Elasticity of Supply/(Elasticity of Demand+Elasticity of Supply))

Tax Incidence for Producers

Go Tax Incidence = 100*(Elasticity of Demand/(Elasticity of Demand+Elasticity of Supply))

Tax Burden for Customers

Go Tax Burden = Elasticity of Supply/(Elasticity of Demand+Elasticity of Supply)

Tax Burden for Suppliers

Go Tax Burden = Elasticity of Demand/(Elasticity of Demand+Elasticity of Supply)

Budget Balance

Go Budget Balance = Tax Revenue-Government Consumption-Transfer Payments

Tax Multiplier

Go Tax Multiplier = ((1-Marginal Propensity to Consume)/Marginal Propensity to Save)

Tax Elasticity

Go Tax Elasticity = Change in Tax Revenue/Change in Economic Activity

Marginal Tax Rate

Go Marginal Tax Rate = Change in Taxes Paid/Change in Taxable Income

Marginal Propensity to Save

Go Marginal Propensity to Save = Change in Savings/Change in Income

Debt to GDP Ratio

Go Debt to Gdp = Total Debt of Country/Gross Domestic Product (GDP)

Budget Deficit

Go Budget Deficit = Government Expenditure-Government Income

Tax Buoyancy

Go Tax Buoyancy = Change in Tax Revenue/Change in GDP

Average Tax Rate

Go Average Tax Rate = Tax Paid/Net Income

Tax Liability

Go Tax Liability = Tax Base*0.01*Tax Rate

Tax Revenue

Go Tax Revenue = Tax Liability*Taxpayer

Laffer Curve

Go Revenue = Tax Rate*Taxable Base

Tax Buoyancy Formula

Tax Buoyancy = Change in Tax Revenue/Change in GDP
TB_y = %ΔR/%ΔGDP

What is Tax Buoyancy?

Tax buoyancy refers to the responsiveness of tax revenue growth to changes in the Gross Domestic Product (GDP) or national income. High tax buoyancy indicates that the tax system can automatically stabilize the economy. During economic expansions, buoyant tax systems ensure that tax revenues increase, potentially limiting overheating. Conversely, during downturns, revenues fall, providing an automatic fiscal stimulus. A low buoyant tax could prompt governments to adjust tax policies, such as modifying tax rates or broadening the tax base, to ensure adequate revenue generation in line with economic growth.

How to Calculate Tax Buoyancy?

Tax Buoyancy calculator uses Tax Buoyancy = Change in Tax Revenue/Change in GDP to calculate the Tax Buoyancy, The Tax Buoyancy formula refers to the responsiveness of tax revenue growth to changes in the Gross Domestic Product (GDP) or national income. Tax Buoyancy is denoted by TB_y symbol.

How to calculate Tax Buoyancy using this online calculator? To use this online calculator for Tax Buoyancy, enter Change in Tax Revenue (%ΔR) & Change in GDP (%ΔGDP) and hit the calculate button. Here is how the Tax Buoyancy calculation can be explained with given input values -> 6.666667 = 20/4.

FAQ

What is Tax Buoyancy?

The Tax Buoyancy formula refers to the responsiveness of tax revenue growth to changes in the Gross Domestic Product (GDP) or national income and is represented as TB_y = %ΔR/%ΔGDP or Tax Buoyancy = Change in Tax Revenue/Change in GDP. Change in Tax Revenue is the percentage increase or decrease in total tax income over a specific period, typically comparing it to the previous period & Change in GDP is the percentage increase or decrease in the total value of goods and services produced within a country's borders over a specific period, usually compared to the previous period.

How to calculate Tax Buoyancy?

The Tax Buoyancy formula refers to the responsiveness of tax revenue growth to changes in the Gross Domestic Product (GDP) or national income is calculated using Tax Buoyancy = Change in Tax Revenue/Change in GDP. To calculate Tax Buoyancy, you need Change in Tax Revenue (%ΔR) & Change in GDP (%ΔGDP). With our tool, you need to enter the respective value for Change in Tax Revenue & Change in GDP and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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