Measuring the excess burden of tax in theory and practice

The article deals about the issue of inefficiency of tax systems expressed though the excess burden of tax. The aim is to give a review about various theories of excess burden of tax, namely Marshall's basic concept (draft), more general (global) idea of non-linear supply and demand (curves), Hicks' excess burden of tax and excess burden of tax with the condition of overall market equilibrium. Theories are valuated considering the reality of assumptions. There are explained possibilities and limits of various concepts (drafts) of excess burden of tax from the aspect of its quantification and there are also indicated implications for the government policy in tax sphere.

Keywords: taxation, excess burden of tax, compensated demand, consumer surplus, producer surplus, tax efficiency