Video: The Excess Burden of a Tax
August 17, 2009
The Tax Foundation released a Special Report Friday looking at the total economic cost of higher tax rates after the expiration of the 2001 and 2003 tax cuts and factoring in a proposed surtax on the rich to pay for health care reform. The federal government expects to raise $88 billion in 2011 from the higher rates, but the economy will incur a “deadweight loss” of $76 billion, raising the total cost of the tax increases to $164 billion – nearly double what lawmakers intend to raise.
In the following Tax Foundation video, Senior Economist Gerald Prante further explains the deadweight loss – or “excess burden” – of a tax.
Be sure to subscribe to the Tax Foundation’s YouTube Channel.
Was this page helpful to you?
The Tax Foundation works hard to provide insightful tax policy analysis. Our work depends on support from members of the public like you. Would you consider contributing to our work?Contribute to the Tax Foundation
Let us know how we can better serve you!
We work hard to make our analysis as useful as possible. Would you consider telling us more about how we can do better?Give Us Feedback