A tax that imposes a small excess burden relative to the tax revenue that it raises is

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An efficient tax is one that imposes a small excess burden relative to the tax revenue it raises. This means that the revenue raised by the tax is close to the amount of money that would have been earned in the absence of the tax. Efficient taxes are therefore considered desirable because they are less likely to create economic distortions or inefficiencies. Payroll taxes, sin taxes, and FICA taxes may all have higher excess burdens relative to the revenue they raise, making them less efficient.

A Tax That Imposes a Small Excess Burden Relative to the Tax