Economics · Macroeconomics

Designing the Tax System — Optimal Income Taxation in 60 Minutes

Step into the Costaria Treasury and design a tax system from scratch.

3 rounds Executive English, Español

Preview

About this simulation

Step into the Costaria Treasury and design a tax system from scratch. Apply the Mirrlees-Saez optimal-tax formula, calibrate it with modern elasticities, locate the schedule relative to the Laffer peak, and defend a six-instrument reform (PIT, EITC, capital tax, wealth tax, VAT, base broadening) against a sceptical Cabinet across three rounds — equity, efficiency, and political reality on the same page.

Who it is for

An advanced simulation for participants used to working with the main frameworks and trade-offs of the subject, designed for executive education and experienced professionals.

How a session runs

  1. The instructor creates a session from the Eureka dashboard and invites the participants.
  2. Participants play 3 rounds. In each one they submit their decisions and the simulation calculates the results. The first round opens with: The Mirrlees framework.
  3. The simulation can be run in English, Español.
  4. The instructor follows each participant's progress and results from the dashboard, and uses the class results for the debrief.

Decisions participants make

The decisions participants make during the simulation:

  • Top PIT marginal rate (%)
  • Number of PIT bands (1–7)
  • Standard deduction (USD)
  • Capital income tax (%)
  • EITC match rate (%)
  • VAT rate (%)
  • Wealth tax
  • Base broadening

What participants track

What participants follow on screen as the rounds go by:

  • Tax-system levers
  • Cabinet response
  • Diagnostics
  • Reform history

Subjects covered

Designed for courses in Macroeconomics.

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