deadweight loss
noun[CorU]
ukusECONOMICS,TAX
alossthatoccurswhen agovernmentraisestaxesinorderto get moremoney, but thenlosesmoneyas aresult. Forexample, acompanythat goesbankruptbecause ofincreasedtaxeswillstoppayingtaxescompletely:
Governmentspendingisjustifiedonly if thebenefitsthat itproducesexceedsthetotalcostofpayingfor thosebenefits,includingthe deadweightlossofraisingtherevenue.