Excess Burden defined Equivalent variation is the amount of income we would have to take away(before any tax was imposed) to induce a move to the lower indifference curve Taking away income is equivalent to a parallel movement inward on the budget constraint Budget constraint H/in Figure 13. 3 shows this 1010 Excess Burden Defined • Equivalent variation is the amount of income we would have to take away (before any tax was imposed) to induce a move to the lower indifference curve. • Taking away income is equivalent to a parallel movement inward on the budget constraint. • Budget constraint HI in Figure 13.3 shows this