distortion

The concept of "distortions" is often mentioned on this blog, so you may be wondering, "What does 'economic distorion' look like?"

[E]conomic distortion is an abstract concept. It's hard to illustrate to journalists and others how millions of tiny tax-induced distortions in the economy can total up to a huge economic loss for the nation as a whole, reducing everyone's well-being simply because lawmakers have written poor tax policy into law that encourages people to waste resources on minimizing tax burdens rather than engage in productive activity like work and saving.

The Tax Foundation has further insight, with help from the Wall Street Journal.