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Distinguish buoyancy from elasticity of a tax

      

Distinguish buoyancy from elasticity of a tax

  

Answers


Wilfred
-Buoyancy refers to flexibility which is the responsiveness of the tax revenue due to the change in the tax National Income and discretionary changes i.e. the tax laws, provision and schedules.
-Elasticity s responsiveness of the tax Revenue to change in National Income discretionary changes affected through changes in tax rates such as corporate tax rate, VAT rates, graduated scale etc.
Wilfykil answered the question on February 26, 2019 at 06:18


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