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Tax Game

Mark Maier Glendale Community College (CA)
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Summary

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The link between taxes rates and income distribution, or tax incidence, is an important concept in economics principles courses. The Tax Game simulation requires a student to set tax rates for a mythical economy, including the: income tax, property tax,wealth tax, payroll tax, corporate income tax,sales tax,and excise taxes. The student can choose any rates he or she wishes, but must achieve a given revenue target. After the rates are selected, the simulation calculates the Gini coefficient for the student's tax system and the student can readjust taxes to achieve a more desirable outcome. The simulation is most appropriate for economics principles courses. The Tax Game was developed by Mark Maier at Glendale Community College (CA).

Learning Goals


After completion of this activity, students should be able to:

Context for Use

The example is most appropriate for a microeconomics principles course. The example will generally be used in the second half of the course.

Description and Teaching Materials

The simulation is available on the web at The Tax Game. It can be used as an interactive lecture demonstration. The student instruction screen is shown below.

Tax Game jpg
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Tax Game open screen[creative commons]
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After entering a set of tax rates, the simulation returns the following information.

Tax Game summary jpg
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[creative commons]
Reuse: This item is offered under a Creative Commons Attribution-NonCommercial-ShareAlike license http://creativecommons.org/licenses/by-nc-sa/3.0/ You may reuse this item for non-commercial purposes as long as you provide attribution and offer any derivative works under a similar license.



TIME REQUIREMENTS:
Instructor preparation: One hour.
Class preparation: One 50 minute class period.
Class simulation: One 50 minute class period.

Teaching Notes and Tips


Assessment

References and Resources

Tax Policy Center

The Tax Game simulation

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