Tax Elasticity And Tax Buoyancy In Jordan During The Period (1980-2020) "Analytical Study"

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Saleh Yahya Al-Freijat


This study is mainly aimed at disclosing the impact of elasticity and tax buoyancy on the Jordanian economy through an assessment of the elasticity and tax buoyancy and the impact of the amendment of tax laws in Jordan during period (1980-2020). The OLS method was used to estimate the mode, and the results showed: if Jordan's GDP grows by 5% annually and there are no changes in the tax system, tax revenue should increase by 4.8% per year (97% of 5%). This is in case there are no changes to the tax systems. "If Jordan's tax laws and regulations are amended, the Jordan Floating Tax buoyancy indicates that tax revenue collecting in Jordan should increase by 4.9% (99% of 5%)"."In short, the net effects of the structural changes made to Jordan's tax system led to a 0.01% growth in tax revenue, meaning that tax policy was effective in maintaining tax collection in Jordan." However, the changes and amendments that took place in the tax laws did not add any significant additional revenue, but rather increased the burden on citizens, especially those in the middle and poor classes.

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