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Deadweight loss?


When economists speak of the costs of taxation, they generally refer to the 鈥渄ead weight鈥?loss
of taxation and a general efficiency loss????

why is that?

Dead weight loss is derived from all the people and businesses that don't pay taxes for some reason or another. General efficiency loss is similar but relates to the cost of administering the tax collection.

That must refer to the cost of collecting the tax and administering the taxation system. Just a guess, but it sounds logical.

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