The excess tax burden is in the form of the loss in private production that may take place if incentives to work and to produce are discourageD.

Question

Quizplus · Accepted Answer

The statement correctly defines the concept of excess tax burden. It refers to the negative impact of taxes on private production and incentives to work and produce. This can result in a loss of economic efficiency and welfare for individuals and society as a whole. Therefore, reducing the excess tax burden is an important policy goal for promoting growth and development.

The Excess Tax Burden Is in the Form of the Loss