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The excess burden of a tax is a measure of the foregone consumption as a result of having to pay taxes

Economics Dec 05, 2020

The excess burden of a tax

is a measure of the foregone consumption as a result of having to pay taxes.

measures the efficiency loss to the economy that results from a tax, causing a reduction in the quantity of goods and services produced.

is a measure of the hardship imposed on low-income individuals in a society.

is measured by the administrative costs required to implement a tax system.

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The excess burden of a tax,

measures the efficiency loss to the economy that results from a tax, causing a reduction in the quantity of goods and services produced.

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