It cannot be eliminated during ordinary taxation, though it is minimized when supply is relatively inelastic.
Henry George suggested in Progress and Poverty that a tax on land alone can eliminate this. It cannot be eliminated during ordinary taxation, though it is minimized when supply is relatively inelastic. On a supply and demand curve, this is represented by the area taken away from producer and consumer surplus that does not go to the government. FTP, what is this fall in total surplus from when a tax is issued in an economy, changing the market outcome?
Henry George suggested in Progress and Poverty that a tax on land alone can eliminate this.
deadweight loss