you're reading...

Taxing Possibilities

A recent article on the implications of filing taxes jointly had an interesting graphic that is fun to discuss with your students.

Article: http://www.nytimes.com/interactive/2015/04/16/upshot/marriage-penalty-couples-income.html


This visualization has a lot of quantitative information to unpack!  I ask them questions such as:

  1. Why does the vertical axis start at 50-50 and not 0-100?
  2. In terms of paying taxes, is it better for a married couple without children to have their income split evenly between both people or to have a single earner?
  3. How is the percentage tax penalty/bonus being computed?
  4. Why don’t they color the chart according to the absolute $ size of the penalty/bonus?  Hint: Compare two different points on the graph with the same percentage penalty/bonus.

What I really like about this article is the reasoning behind the claim that there are 3 possible goals when developing a taxation system, but countries cannot meet all three.  Can you figure out why?

3 tax options



No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s



%d bloggers like this: