Original sentence: A permanent loss of surplus occurs, shown in orange.However, because this model greatly simplifies the economics of taxation, governments must weigh many other factors when choosing a tax system.This loss is often called dead weight loss
Edited sentence: A permanent loss of surplus available to society occurs, shown in orange.Almost all taxes are a percentage of the cost of the good, many are also progressive.Also note that this flat tax is extremely simplistic.Furthermore the model is inapplicable to taxation on people's income, rather than goods and services.In these cases a tax can be used as a tool, known as a Pigovian tax, to reduce the inefficiency in the market.Some economists view taxes as creating inefficiencies in the economy.The effects are of a very different nature, commonly manifested in avoiding the law of one particular country by moving capital or physically elsewhere.This inefficiency loss is often called dead weight loss or the excess burden of taxation.This is because the incentive to earn money (rather than spending it on one of a choice of products) presents a single choice - to earn, and people want to regardless.This is especially true with income taxes.This model does not take into account what the government uses the tax money for, however, and a tax could be justified if it removes other greater inefficiencies in the economy, such as negative externalities or monopolies.This shrinkage of the surplus available to society is a reason why many economists dislike taxes