{
  "title": "Tax Buoyancy in OECD Countries",
  "publication": "IMF Working Papers, June 19, 2014",
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  "summary": "By how much will faster economic growth boost government revenue? This paper estimates short- and long-run tax buoyancy in OECD countries between 1965 and 2012.",
  "sections": [
    {
      "heading": "Scope and methodology",
      "content": "- Estimates short- and long-run tax buoyancy in OECD countries between 1965 and 2012.\n- Uses aggregate and tax-type level analysis (corporate taxes, personal income taxes, social contributions, excises, property taxes, VAT)."
    },
    {
      "heading": "Key empirical findings",
      "content": "- For aggregate tax revenues, short-run tax buoyancy does not significantly differ from one in the majority of countries.\n- Short-run tax buoyancy has increased since the late 1980s, so tax systems have generally become better automatic stabilizers.\n- Long-run buoyancy exceeds one in about half of the OECD countries, implying that GDP growth has helped improve structural fiscal deficit ratios.\n- Corporate taxes are by far the most buoyant.\n- Excises and property taxes are the least buoyant.\n- For personal income taxes and social contributions:\n  - Short- and long-run buoyancies have declined since the late 1980s.\n  - On average, they have become lower than one."
    },
    {
      "heading": "Implications and interpretation",
      "content": "- Higher short-run buoyancy since the late 1980s suggests stronger automatic stabilization properties of tax systems across many OECD countries.\n- Long-run buoyancy above one in roughly half of countries indicates that growth has contributed to improving structural fiscal positions in those countries.\n- The high buoyancy of corporate taxes implies corporate profit cycles strongly affect revenue responsiveness to GDP.\n- Declining buoyancy of personal income taxes and social contributions since the late 1980s suggests these revenue sources have become less responsive to GDP growth on average.\n\nSource: Tax Buoyancy in OECD Countries (IMF Working Paper), June 19, 2014.\n\n---\n\n Content in this bundle\n\n- wp14110\n  - wp14110 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp14110 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/tax-buoyancy-in-oecd-countries-41661"
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    "Authors: Vincent Belinga, Dora Benedek, Ruud A. de Mooij, John Norregaard",
    "Published: June 19, 2014",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781498305075.001",
    "Estimates short- and long-run tax buoyancy in OECD countries between 1965 and 2012.",
    "Uses aggregate and tax-type level analysis (corporate taxes, personal income taxes, social contributions, excises, property taxes, VAT).",
    "For aggregate tax revenues, short-run tax buoyancy does not significantly differ from one in the majority of countries.",
    "Short-run tax buoyancy has increased since the late 1980s, so tax systems have generally become better automatic stabilizers.",
    "Long-run buoyancy exceeds one in about half of the OECD countries, implying that GDP growth has helped improve structural fiscal deficit ratios.",
    "Corporate taxes are by far the most buoyant.",
    "Excises and property taxes are the least buoyant.",
    "For personal income taxes and social contributions:",
    "Higher short-run buoyancy since the late 1980s suggests stronger automatic stabilization properties of tax systems across many OECD countries.",
    "Long-run buoyancy above one in roughly half of countries indicates that growth has contributed to improving structural fiscal positions in those countries.",
    "The high buoyancy of corporate taxes implies corporate profit cycles strongly affect revenue responsiveness to GDP.",
    "Declining buoyancy of personal income taxes and social contributions since the late 1980s suggests these revenue sources have become less responsive to GDP growth on average.",
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