An Introduction to Microsimulation Tax-Benefit Models

Output Dashboard
Net Cost	Gainers and Losers	Marginal Effective Tax Rates	Replacement Rates
Changes By Decile	Lorenz Curve	Inequality	Poverty
Taxes on Income	Taxes on Spending	Spending on Benefits	Benefit Targetting

PLEASE NOTE this model is incomplete and there are bugs in the interface (some arrows wrong way).

We’ll now briefly study direct taxes.

We’ve covered many of the key ideas with our budget constraint exercise. But we have a much richer environment to explore them in now.

cutting the tax allowance; or
increasing both the basic and higher rates of income tax. contrast the effects of these things on on each of our 9 measures. Which would you say is the more progressive? (Progressivity was discussed above in section XX).

experiment further with changes to income tax rates and allowances. Try graphing what you find. It’s always useful to have an feel for how much tax you would raise from small changes to rates and allowances, especially when you’re trying to ‘balance the books’ in some complicated package of measures.