Video: The Excess Burden of a Tax August 17, 2009 Natasha Altamirano Natasha Altamirano 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. Stay informed on the tax policies impacting you. Subscribe to get insights from our trusted experts delivered straight to your inbox. Subscribe Share Tweet Share Email Topics