The amount of the deadweight loss varies with the shape of the supply and demand curves, and not all taxes have the same impact. Nevertheless, under basic free-market economics, taxation imposes a ...

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Lea Uradu, J.D., is a Maryland state registered tax preparer, state-certified notary ...

They must also make changes in their spending habits to avoid taxes, further placing a burden on them and lessening their overall economic quality of life. While taxes create deadweight loss ...

Paul Solman: And why is it called the “deadweight loss”? Joel Waldfogel: Well that’s just a jargon term in economics. It means waste; it’s a loss to one party that’s not offset as a gain ...

But, argues one famous economics paper, why even bother? In 1993, economist Joel Waldfogel wrote the article that is a favorite of Grinches everywhere, including myself: “The Deadweight Loss of ...

But it is not relevant in this case. The economic theory of the deadweight loss is straightforward. If the basis of taxation is a particular transaction—e.g., a sale, or income earned—then ...

(Though who knows? Less trading might actually be a net benefit to society, not a deadweight loss.) Would they quit their jobs? Again unlikely, but in any case this would have no effect on society ...

The amount of the deadweight loss varies with the shape of the supply and demand curves, and not all taxes have the same impact. Nevertheless, at least under basic free-market economics ...