TCJA_extension (1).ipynb

{
 "cells": [
  {
   "cell_type": "code",
   "execution_count": 1,
   "metadata": {},
   "outputs": [],
   "source": [
    "from biztax import Policy, BusinessModel, Response\n",
    "import taxcalc as itax\n",
    "import pandas as pd"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 2,
   "metadata": {},
   "outputs": [],
   "source": [
    "itax_reform = {\n",
    "    \"II_rt1\": {2018: 0.10},\n",
    "    \"II_rt2\": {2018: 0.12},\n",
    "    \"II_rt3\": {2018: 0.22},\n",
    "    \"II_rt4\": {2018: 0.24},\n",
    "    \"II_rt5\": {2018: 0.32},\n",
    "    \"II_rt6\": {2018: 0.35},\n",
    "    \"II_rt7\": {2018: 0.37},\n",
    "    \"II_brk1\": {2018: [9525, 19050, 9525, 13600, 19050]},\n",
    "    \"II_brk2\": {2018: [38700, 77400, 38700, 51800, 77400]},\n",
    "    \"II_brk3\": {2018: [82500, 165000, 82500, 82500, 165000]},\n",
    "    \"II_brk4\": {2018: [157500, 315000, 157500, 157500, 315000]},\n",
    "    \"II_brk5\": {2018: [200000, 400000, 200000, 200000, 400000]},\n",
    "    \"II_brk6\": {2018: [500000, 600000, 300000, 500000, 600000]},\n",
    "    \"PT_rt1\": {2018: 0.10},\n",
    "    \"PT_rt2\": {2018: 0.12},\n",
    "    \"PT_rt3\": {2018: 0.22},\n",
    "    \"PT_rt4\": {2018: 0.24},\n",
    "    \"PT_rt5\": {2018: 0.32},\n",
    "    \"PT_rt6\": {2018: 0.35},\n",
    "    \"PT_rt7\": {2018: 0.37},\n",
    "    \"PT_brk1\": {2018: [9525, 19050, 9525, 13600, 19050]},\n",
    "    \"PT_brk2\": {2018: [38700, 77400, 38700, 51800, 77400]},\n",
    "    \"PT_brk3\": {2018: [82500, 165000, 82500, 82500, 165000]},\n",
    "    \"PT_brk4\": {2018: [157500, 315000, 157500, 157500, 315000]},\n",
    "    \"PT_brk5\": {2018: [200000, 400000, 200000, 200000, 400000]},\n",
    "    \"PT_brk6\": {2018: [500000, 600000, 300000, 500000, 600000]},\n",
    "    \"PT_qbid_rt\": {2018: 0.2},\n",
    "    \"PT_qbid_taxinc_thd\": {2018: [157500, 315000, 157500, 157500, 315000]},\n",
    "    \"PT_qbid_taxinc_gap\": {2018: [50000, 100000, 50000, 50000, 100000]},\n",
    "    \"PT_qbid_w2_wages_rt\": {2018: 0.5},\n",
    "    \"PT_qbid_alt_w2_wages_rt\": {2018: 0.25},\n",
    "    \"PT_qbid_alt_property_rt\": {2018: 0.025},\n",
    "    \"STD\": {2018: [12000, 24000, 12000, 18000, 24000]},\n",
    "    \"II_em\": {2018: 0},\n",
    "    \"ODC_c\": {2018: 500},\n",
    "    \"CTC_c\": {2018: 2000},\n",
    "    \"CTC_ps\": {2018: [200000, 400000, 200000, 200000, 400000]},\n",
    "    \"ACTC_c\": {2018: 1400,\n",
    "               2022: 1500,\n",
    "               2025: 1600},\n",
    "    \"ACTC_Income_thd\": {2018: 2500},\n",
    "    \"AMT_em\": {2018: [70300, 109400, 54700, 70300, 109400]},\n",
    "    \"AMT_em_ps\": {2018: [500000, 1000000, 500000, 500000, 1000000]},\n",
    "    \"AMT_em_pe\": {2018: 718800},\n",
    "    \"ALD_DomesticProduction_hc\": {2018: 1},\n",
    "    \"ALD_AlimonyPaid_hc\": {2019: 1},\n",
    "    \"ALD_AlimonyReceived_hc\": {2019: 0},\n",
    "    \"ALD_BusinessLosses_c\": {2018: [250000, 500000, 250000, 250000, 500000]},\n",
    "    \"ID_ps\": {2018: [9e99, 9e99, 9e99, 9e99, 9e99]},\n",
    "    \"ID_prt\": {2018: 0.00},\n",
    "    \"ID_crt\": {2018: 1.0},\n",
    "    \"ID_Charity_crt_all\": {2018: 0.6},\n",
    "    \"ID_Casualty_hc\": {2018: 1},\n",
    "    \"ID_AllTaxes_c\": {2018: [10000, 10000, 5000, 10000, 10000]},\n",
    "    \"ID_Miscellaneous_hc\": {2018: 1},\n",
    "    \"ID_Medical_frt\": {2017: 0.075,\n",
    "                       2019: 0.100}\n",
    "}\n",
    "\n",
    "btax_reform_dict = {\n",
    "    'tau_nc': {2025: 0.230259853},\n",
    "    'tau_e': {2025: 0.090666182},\n",
    "    'pymtc_hc': {2022: 0},\n",
    "    'pymtc_refund': {2022: 1.0},\n",
    "    'depr_3yr_bonus': {2022: 1.0},\n",
    "    'depr_5yr_bonus': {2022: 1.0},\n",
    "    'depr_7yr_bonus': {2022: 1.0},\n",
    "    'depr_10yr_bonus': {2022: 1.0},\n",
    "    'depr_15yr_bonus': {2022: 1.0},\n",
    "    'depr_20yr_bonus': {2022: 1.0},\n",
    "    'adjustedTaxInc_def': {2022: 1},\n",
    "    'GILTI_inclusion': {2025: 0.5},\n",
    "    'fdii_rt': {2025: 0.375}\n",
    "}"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 3,
   "metadata": {},
   "outputs": [
    {
     "name": "stdout",
     "output_type": "stream",
     "text": [
      "CTC_c was redefined in release 1.0.0\n",
      "\n"
     ]
    },
    {
     "name": "stderr",
     "output_type": "stream",
     "text": [
      "/Users/petermetz/anaconda3/lib/python3.6/site-packages/pandas/core/frame.py:4102: SettingWithCopyWarning: \n",
      "A value is trying to be set on a copy of a slice from a DataFrame\n",
      "\n",
      "See the caveats in the documentation: http://pandas.pydata.org/pandas-docs/stable/user_guide/indexing.html#returning-a-view-versus-a-copy\n",
      "  errors=errors,\n",
      "/Users/petermetz/anaconda3/lib/python3.6/site-packages/pandas/core/indexing.py:376: SettingWithCopyWarning: \n",
      "A value is trying to be set on a copy of a slice from a DataFrame.\n",
      "Try using .loc[row_indexer,col_indexer] = value instead\n",
      "\n",
      "See the caveats in the documentation: http://pandas.pydata.org/pandas-docs/stable/user_guide/indexing.html#returning-a-view-versus-a-copy\n",
      "  self.obj[key] = _infer_fill_value(value)\n",
      "/Users/petermetz/anaconda3/lib/python3.6/site-packages/pandas/core/indexing.py:494: SettingWithCopyWarning: \n",
      "A value is trying to be set on a copy of a slice from a DataFrame.\n",
      "Try using .loc[row_indexer,col_indexer] = value instead\n",
      "\n",
      "See the caveats in the documentation: http://pandas.pydata.org/pandas-docs/stable/user_guide/indexing.html#returning-a-view-versus-a-copy\n",
      "  self.obj[item] = s\n",
      "/Users/petermetz/anaconda3/lib/python3.6/site-packages/pandas/core/frame.py:4223: SettingWithCopyWarning: \n",
      "A value is trying to be set on a copy of a slice from a DataFrame\n",
      "\n",
      "See the caveats in the documentation: http://pandas.pydata.org/pandas-docs/stable/user_guide/indexing.html#returning-a-view-versus-a-copy\n",
      "  return super().rename(**kwargs)\n"
     ]
    }
   ],
   "source": [
    "# btax policy\n",
    "btax_policy_reform = Policy()\n",
    "btax_policy_reform.implement_reform(btax_reform_dict)\n",
    "\n",
    "# iitax policy\n",
    "itax_policy_reform = itax.Policy()\n",
    "itax_policy_reform.implement_reform(itax_reform)\n",
    "\n",
    "# no responses\n",
    "BM = BusinessModel(btax_policy_reform, itax_policy_reform, investor_data='puf.csv')"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 4,
   "metadata": {},
   "outputs": [],
   "source": [
    "BM.calc_all(response=None)\n",
    "output_df = BM.model_results.round(3)"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 5,
   "metadata": {},
   "outputs": [
    {
     "data": {
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       "<table border=\"1\" class=\"dataframe\">\n",
       "  <thead>\n",
       "    <tr style=\"text-align: right;\">\n",
       "      <th></th>\n",
       "      <th>CTax_change</th>\n",
       "      <th>ITax_change</th>\n",
       "      <th>AllTax_change</th>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>year</th>\n",
       "      <th></th>\n",
       "      <th></th>\n",
       "      <th></th>\n",
       "    </tr>\n",
       "  </thead>\n",
       "  <tbody>\n",
       "    <tr>\n",
       "      <td>2020</td>\n",
       "      <td>0.000</td>\n",
       "      <td>0.000</td>\n",
       "      <td>0.000</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <td>2021</td>\n",
       "      <td>0.000</td>\n",
       "      <td>0.000</td>\n",
       "      <td>0.000</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <td>2022</td>\n",
       "      <td>0.000</td>\n",
       "      <td>-0.000</td>\n",
       "      <td>-0.000</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <td>2023</td>\n",
       "      <td>-17.617</td>\n",
       "      <td>0.975</td>\n",
       "      <td>-16.642</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <td>2024</td>\n",
       "      <td>-31.868</td>\n",
       "      <td>1.695</td>\n",
       "      <td>-30.172</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <td>2025</td>\n",
       "      <td>-14.723</td>\n",
       "      <td>-3.160</td>\n",
       "      <td>-17.883</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <td>2026</td>\n",
       "      <td>-24.157</td>\n",
       "      <td>-207.404</td>\n",
       "      <td>-231.561</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <td>2027</td>\n",
       "      <td>-32.003</td>\n",
       "      <td>-214.142</td>\n",
       "      <td>-246.145</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <td>2028</td>\n",
       "      <td>-18.306</td>\n",
       "      <td>-221.531</td>\n",
       "      <td>-239.837</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <td>2029</td>\n",
       "      <td>-7.826</td>\n",
       "      <td>-228.676</td>\n",
       "      <td>-236.502</td>\n",
       "    </tr>\n",
       "  </tbody>\n",
       "</table>\n",
       "</div>"
      ],
      "text/plain": [
       "      CTax_change  ITax_change  AllTax_change\n",
       "year                                         \n",
       "2020        0.000        0.000          0.000\n",
       "2021        0.000        0.000          0.000\n",
       "2022        0.000       -0.000         -0.000\n",
       "2023      -17.617        0.975        -16.642\n",
       "2024      -31.868        1.695        -30.172\n",
       "2025      -14.723       -3.160        -17.883\n",
       "2026      -24.157     -207.404       -231.561\n",
       "2027      -32.003     -214.142       -246.145\n",
       "2028      -18.306     -221.531       -239.837\n",
       "2029       -7.826     -228.676       -236.502"
      ]
     },
     "execution_count": 5,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "# NOTE: the ITax_change includes small effects from business tax reform. \n",
    "output_df.set_index('year').iloc[6:]"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 6,
   "metadata": {},
   "outputs": [
    {
     "name": "stdout",
     "output_type": "stream",
     "text": [
      "CTC_c was redefined in release 1.0.0\n",
      "\n"
     ]
    },
    {
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       "  <thead>\n",
       "    <tr style=\"text-align: right;\">\n",
       "      <th></th>\n",
       "      <th>iitax1</th>\n",
       "      <th>iitax2</th>\n",
       "      <th>iitax_diff</th>\n",
       "    </tr>\n",
       "  </thead>\n",
       "  <tbody>\n",
       "    <tr>\n",
       "      <td>0-10n</td>\n",
       "      <td>2.936</td>\n",
       "      <td>4.895</td>\n",
       "      <td>1.959</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <td>0-10z</td>\n",
       "      <td>-0.769</td>\n",
       "      <td>-0.783</td>\n",
       "      <td>-0.014</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <td>0-10p</td>\n",
       "      <td>-3.271</td>\n",
       "      <td>-3.336</td>\n",
       "      <td>-0.065</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <td>10-20</td>\n",
       "      <td>-19.065</td>\n",
       "      <td>-21.108</td>\n",
       "      <td>-2.043</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <td>20-30</td>\n",
       "      <td>-31.955</td>\n",
       "      <td>-36.285</td>\n",
       "      <td>-4.330</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <td>30-40</td>\n",
       "      <td>-15.893</td>\n",
       "      <td>-23.182</td>\n",
       "      <td>-7.289</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <td>40-50</td>\n",
       "      <td>12.406</td>\n",
       "      <td>1.944</td>\n",
       "      <td>-10.462</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <td>50-60</td>\n",
       "      <td>50.817</td>\n",
       "      <td>36.057</td>\n",
       "      <td>-14.760</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <td>60-70</td>\n",
       "      <td>107.391</td>\n",
       "      <td>87.430</td>\n",
       "      <td>-19.961</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <td>70-80</td>\n",
       "      <td>191.098</td>\n",
       "      <td>162.653</td>\n",
       "      <td>-28.445</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <td>80-90</td>\n",
       "      <td>344.402</td>\n",
       "      <td>304.326</td>\n",
       "      <td>-40.076</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <td>90-100</td>\n",
       "      <td>1776.715</td>\n",
       "      <td>1698.088</td>\n",
       "      <td>-78.627</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <td>ALL</td>\n",
       "      <td>2414.813</td>\n",
       "      <td>2210.699</td>\n",
       "      <td>-204.114</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <td>90-95</td>\n",
       "      <td>305.573</td>\n",
       "      <td>281.331</td>\n",
       "      <td>-24.242</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <td>95-99</td>\n",
       "      <td>560.237</td>\n",
       "      <td>503.652</td>\n",
       "      <td>-56.585</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <td>Top 1%</td>\n",
       "      <td>910.905</td>\n",
       "      <td>913.106</td>\n",
       "      <td>2.201</td>\n",
       "    </tr>\n",
       "  </tbody>\n",
       "</table>\n",
       "</div>"
      ],
      "text/plain": [
       "          iitax1    iitax2  iitax_diff\n",
       "0-10n      2.936     4.895       1.959\n",
       "0-10z     -0.769    -0.783      -0.014\n",
       "0-10p     -3.271    -3.336      -0.065\n",
       "10-20    -19.065   -21.108      -2.043\n",
       "20-30    -31.955   -36.285      -4.330\n",
       "30-40    -15.893   -23.182      -7.289\n",
       "40-50     12.406     1.944     -10.462\n",
       "50-60     50.817    36.057     -14.760\n",
       "60-70    107.391    87.430     -19.961\n",
       "70-80    191.098   162.653     -28.445\n",
       "80-90    344.402   304.326     -40.076\n",
       "90-100  1776.715  1698.088     -78.627\n",
       "ALL     2414.813  2210.699    -204.114\n",
       "90-95    305.573   281.331     -24.242\n",
       "95-99    560.237   503.652     -56.585\n",
       "Top 1%   910.905   913.106       2.201"
      ]
     },
     "execution_count": 6,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "# Distributional analysis 2026\n",
    "# NOTE: Does not take into account business tax reform or behavioral responses\n",
    "recs = itax.Records()\n",
    "pol = itax.Policy()\n",
    "calc1 = itax.Calculator(policy=pol, records=recs)\n",
    "\n",
    "pol_ext = itax.Policy()\n",
    "pol_ext.implement_reform(itax_reform)\n",
    "calc2 = itax.Calculator(policy=pol_ext, records=recs)\n",
    "\n",
    "cyr = 2026\n",
    "calc1.advance_to_year(cyr)\n",
    "calc1.calc_all()\n",
    "calc2.advance_to_year(cyr)\n",
    "calc2.calc_all()\n",
    "dist_table1, dist_table2 = calc1.distribution_tables(calc2, 'weighted_deciles')\n",
    "dist_diff = dist_table2['iitax'] - dist_table1['iitax']\n",
    "dist = pd.concat([dist_table1['iitax'], dist_table2['iitax'], dist_diff], axis=1)\n",
    "dist.columns = ['iitax1', 'iitax2', 'iitax_diff']\n",
    "dist"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": null,
   "metadata": {},
   "outputs": [],
   "source": []
  }
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