An excess burden is present when taxpayers alter their behavior on account of taxation.

Name: An excess burden is present when taxpayers alter their behavior on account of taxation.
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An excess burden, also known as a deadweight loss, occurs when taxation causes individuals or businesses to change their behavior in ways that reduce economic efficiency. This can result in a loss of welfare for society as a whole beyond the revenue collected by the government through taxation.

An Excess Burden Is Present When Taxpayers Alter Their Behavior