ECON MUNI students are now learning about how the tax system works using a simulation game. The game allows them to experience first-hand the impact of tax changes on the incomes of different groups of people. They can also link theoretical knowledge with practice and develop analytical thinking.
The players shall propose changes in the tax system of the Czech Republic with the aim of increasing public budget revenues by a set amount of money. However, any decision they make may affect the amount of their own disposable income. The students act as taxpayers from one of the five income groups and their moves in the game are based on their specific socio-economic position. An excel application helps evaluate their decisions, which immediately shows the impact on public budgets and the players.
"The aim of the game is, among other things, that students shall ideally adjust the taxes in a way that they lose as little as possible from their income. But they have professional estimates and resources available to help them make their decisions," says Petr Valouch, one of the main authors of the game. Besides the expected impact on public finances, the players must also consider other factors such as their spending, savings, assets and their possible drinking and smoking. After that, they discuss the outcome of the game with their teachers who provide them with feedback. The students then play the game again, taking into account the information obtained in the first round including teachers' comments.
According to Petr Valouch, one piece of practical experience can be more valuable to the students than a whole semester of theoretical lectures. "The mere calculation of pre-set tax examples cannot fully cover one of the main aspects of tax-related matters: the ability to analyse different decision options quickly and make the best decision for oneself or one's clients," he explains. It is this new game that allows students and teachers to change their decision parameters, encouraging constant thinking about all possible tax situations and their implications in the real world.
Although traditional teaching continues to be an important part of the Tax System course, expanding it with interactive elements has also proved necessary. As the course has been compulsory or compulsory elective for all ECON MUNI undergraduate programmes since the spring semester, the number of students falling into different degree programmes has increased significantly. Teaching needs to be more up-to-date and accessible to a wider target group than ever before.
Pilot testing has been completed, and the authors are collecting feedback from the course participants. "We are interested in whether the assignment in the game was clear, whether the voting system was clear and how students navigated through the application. We are open to suggestions for improving the game, which we will be happy to incorporate into the final version," Valouch explains.
The game is particularly useful for deepening analytical skills and critical thinking, developing teamwork and the ability to formulate clear conclusions. "Teaching taxes is already a key part of the knowledge portfolio of students, not only at universities with an economic focus. Their ability to work with modern technologies, the simulation of various tax situations and work with specialised tax software will be an essential part of the knowledge and skills of graduates in the future," concludes Valouch.
Supported by the Strategic Management Support Programme for Universities.
