Merge pull request #2807 from martinholmer/fix-2798

Fix specification of domestic production deduction under TCJA

taxcalc.egg-info/SOURCES.txt

@@ -171,8 +171,6 @@ taxcalc/reforms/ptaxes2.json
 taxcalc/reforms/ptaxes2.out.csv
 taxcalc/reforms/ptaxes3.json
 taxcalc/reforms/ptaxes3.out.csv
-taxcalc/reforms/rounding2022.json
-taxcalc/reforms/rounding2022.out.csv
 taxcalc/reforms/archive/Clinton2016.json
 taxcalc/reforms/archive/RyanBrady.json
 taxcalc/reforms/archive/TCJA_House.json

taxcalc/policy_current_law.json

@@ -957,26 +957,6 @@
             {
                 "year": 2018,
                 "value": 1.0
-            },
-            {
-                "year": 2019,
-                "value": 1.0
-            },
-            {
-                "year": 2020,
-                "value": 1.0
-            },
-            {
-                "year": 2021,
-                "value": 1.0
-            },
-            {
-                "year": 2022,
-                "value": 1.0
-            },
-            {
-                "year": 2026,
-                "value": 0.0
             }
         ],
         "validators": {

taxcalc/reforms/ext.json

@@ -54,6 +54,5 @@
     "PT_qbid_w2_wages_rt": {"2026": 0.50},
     "PT_qbid_alt_w2_wages_rt": {"2026": 0.25},
     "PT_qbid_alt_property_rt": {"2026": 0.03},
-    "ALD_BusinessLosses_c": {"2026": [319821.19, 639642.39, 319821.19, 319821.19, 639642.39]},
-    "ALD_DomesticProduction_hc": {"2026": 1.00}
+    "ALD_BusinessLosses_c": {"2026": [319821.19, 639642.39, 319821.19, 319821.19, 639642.39]}
 }

taxcalc/tests/cpscsv_agg_expect.csv

@@ -1,26 +1,26 @@
 ,2017,2018,2019,2020,2021,2022,2023,2024,2025,2026
 Returns (#m),187.1,199.2,201.9,204.5,207.1,209.7,212.3,214.9,217.5,220.1
-AGI ($b),9087.6,10714.8,11167.0,11573.2,13174.9,13543.8,14390.3,15077.5,15785.3,16457.6
+AGI ($b),9087.6,10714.8,11167.0,11573.2,13174.9,13543.8,14390.3,15077.5,15785.3,16487.0
 Itemizers (#m),62.8,23.9,25.0,27.5,31.2,31.2,30.0,29.6,30.6,81.1
-Itemized Deduction ($b),1218.6,612.0,655.1,745.4,862.7,881.9,891.8,918.2,968.4,2181.4
+Itemized Deduction ($b),1218.6,612.0,655.1,745.4,862.7,881.9,891.8,918.2,968.4,2181.5
 Standard Deduction Filers (#m),124.3,175.3,176.9,176.9,175.8,178.5,182.3,185.3,186.9,139.0
-Standard Deduction ($b),1092.1,2951.3,3026.1,3080.8,3091.9,3231.4,3534.5,3790.6,3920.5,1609.9
-Personal Exemption ($b),1383.6,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,2081.6
-Taxable Income ($b),6230.6,7959.2,8322.8,8615.4,10049.9,10332.2,10954.0,11432.4,11996.4,11783.1
-Regular Tax ($b),1108.0,1380.0,1449.0,1497.4,1762.8,1837.4,1939.0,2018.1,2125.0,2339.7
-AMT Income ($b),8319.8,10212.6,10630.3,10965.7,12473.9,12821.8,13655.8,14315.6,14980.7,15073.6
+Standard Deduction ($b),1092.1,2951.3,3026.1,3080.8,3091.9,3231.4,3534.5,3790.6,3920.5,1609.6
+Personal Exemption ($b),1383.6,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,2081.5
+Taxable Income ($b),6230.6,7959.2,8322.8,8615.4,10049.9,10332.2,10954.0,11432.4,11996.4,11810.2
+Regular Tax ($b),1108.0,1380.0,1449.0,1497.4,1762.8,1837.4,1939.0,2018.1,2125.0,2347.7
+AMT Income ($b),8319.8,10212.6,10630.3,10965.7,12473.9,12821.8,13655.8,14315.6,14980.7,15102.7
 AMT Liability ($b),8.1,0.4,0.4,0.5,1.4,0.7,0.7,0.6,0.6,17.2
 AMT Filers (#m),2.6,0.1,0.1,0.1,0.2,0.1,0.1,0.1,0.1,4.1
-Tax before Credits ($b),1116.0,1380.4,1449.4,1497.9,1764.3,1838.0,1939.7,2018.7,2125.6,2356.9
+Tax before Credits ($b),1116.0,1380.4,1449.4,1497.9,1764.3,1838.0,1939.7,2018.7,2125.6,2364.9
 Refundable Credits ($b),70.8,102.5,102.7,655.0,827.1,98.5,106.2,111.4,111.9,97.5
-Nonrefundable Credits ($b),32.7,97.2,99.2,99.2,0.0,107.7,108.4,109.4,111.3,29.9
+Nonrefundable Credits ($b),32.7,97.2,99.2,99.2,0.0,107.7,108.4,109.4,111.3,30.0
 Reform Surtaxes ($b),0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0
 Other Taxes ($b),5.5,10.7,11.3,12.6,13.9,14.4,16.5,17.6,18.8,19.9
-Ind Income Tax ($b),1018.1,1191.4,1258.9,756.3,951.0,1646.2,1741.7,1815.6,1921.2,2249.4
+Ind Income Tax ($b),1018.1,1191.4,1258.9,756.3,951.0,1646.2,1741.7,1815.6,1921.2,2257.4
 Payroll Taxes ($b),1040.8,1141.6,1194.9,1217.9,1318.7,1421.6,1509.2,1584.6,1659.4,1733.6
-Combined Liability ($b),2059.0,2333.0,2453.8,1974.2,2269.7,3067.8,3250.9,3400.2,3580.6,3982.9
-With Income Tax <= 0 (#m),88.1,96.2,97.0,135.4,127.8,96.1,97.8,99.1,99.5,97.4
-With Combined Tax <= 0 (#m),62.8,65.4,66.4,98.2,97.7,67.9,69.3,70.4,71.2,70.7
+Combined Liability ($b),2059.0,2333.0,2453.8,1974.2,2269.7,3067.8,3250.9,3400.2,3580.6,3990.9
+With Income Tax <= 0 (#m),88.1,96.2,97.0,135.4,127.8,96.1,97.8,99.1,99.5,97.3
+With Combined Tax <= 0 (#m),62.8,65.4,66.4,98.2,97.7,67.9,69.3,70.4,71.2,70.6
 UBI Benefits ($b),0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0
 "Total Benefits, Consumption Value ($b)",2790.7,3225.5,3429.9,3617.0,3993.0,4069.6,4390.5,4696.3,4983.2,5266.5
 Total Benefits Cost ($b),2790.7,3225.5,3429.9,3617.0,3993.0,4069.6,4390.5,4696.3,4983.2,5266.5

taxcalc/tests/pufcsv_agg_expect.csv

@@ -1,24 +1,24 @@
 ,2017,2018,2019,2020,2021,2022,2023,2024,2025,2026
 Returns (#m),190.9,194.3,197.3,200.1,202.9,205.6,208.4,211.2,214.0,216.8
-AGI ($b),11078.7,11816.6,12247.2,12722.3,14930.0,14973.9,15955.0,16597.5,17310.2,17852.4
+AGI ($b),11078.7,11816.6,12247.2,12722.3,14930.0,14973.9,15955.0,16597.5,17310.2,17868.8
 Itemizers (#m),45.7,19.4,20.0,21.0,22.6,22.8,21.7,21.2,21.3,51.9
-Itemized Deduction ($b),1274.3,602.7,633.9,692.3,761.9,782.7,788.7,808.0,835.0,2048.0
+Itemized Deduction ($b),1274.3,602.7,633.9,692.3,761.9,782.7,788.7,808.0,835.0,2047.7
 Standard Deduction Filers (#m),145.2,174.8,177.2,178.5,179.6,182.8,186.7,189.9,192.6,164.8
 Standard Deduction ($b),1239.3,2865.3,2954.5,3025.8,3081.1,3234.0,3537.5,3797.9,3952.2,1853.4
-Personal Exemption ($b),1365.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,1959.2
-Taxable Income ($b),8112.2,9179.2,9520.5,9907.3,12003.2,11927.7,12697.8,13130.6,13703.7,13378.4
-Regular Tax ($b),1656.8,1712.3,1778.2,1838.3,2281.5,2282.7,2423.4,2489.8,2601.1,2792.7
-AMT Income ($b),10512.4,11343.5,11749.7,12180.1,14330.8,14356.1,15323.1,15943.2,16630.7,16933.8
+Personal Exemption ($b),1365.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,1959.1
+Taxable Income ($b),8112.2,9179.2,9520.5,9907.3,12003.2,11927.7,12697.8,13130.6,13703.7,13394.9
+Regular Tax ($b),1656.8,1712.3,1778.2,1838.3,2281.5,2282.7,2423.4,2489.8,2601.1,2798.5
+AMT Income ($b),10512.4,11343.5,11749.7,12180.1,14330.8,14356.1,15323.1,15943.2,16630.7,16950.2
 AMT Liability ($b),51.3,22.1,23.0,25.1,27.8,27.4,28.8,30.3,31.8,85.1
 AMT Filers (#m),5.7,0.2,0.2,0.3,0.4,0.3,0.3,0.3,0.3,7.4
-Tax before Credits ($b),1708.1,1734.4,1801.1,1863.4,2309.4,2310.1,2452.2,2520.2,2632.9,2877.8
-Refundable Credits ($b),102.9,117.5,118.5,642.0,802.6,119.2,126.9,132.8,135.0,121.8
+Tax before Credits ($b),1708.1,1734.4,1801.1,1863.4,2309.4,2310.1,2452.2,2520.2,2632.9,2883.5
+Refundable Credits ($b),102.9,117.5,118.5,642.0,802.6,119.2,126.9,132.8,135.0,121.7
 Nonrefundable Credits ($b),67.0,127.3,129.2,128.5,47.6,141.0,143.3,144.0,145.7,77.7
 Reform Surtaxes ($b),0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0
-Other Taxes ($b),40.0,44.8,43.6,52.9,84.9,61.5,66.5,65.2,66.0,64.2
-Ind Income Tax ($b),1578.2,1534.3,1597.0,1145.8,1544.0,2111.5,2248.5,2308.6,2418.2,2742.6
+Other Taxes ($b),40.0,44.8,43.6,52.9,84.9,61.5,66.5,65.2,66.0,64.3
+Ind Income Tax ($b),1578.2,1534.3,1597.0,1145.8,1544.0,2111.5,2248.5,2308.6,2418.2,2748.4
 Payroll Taxes ($b),1083.8,1133.3,1185.4,1209.0,1306.0,1403.4,1492.6,1567.4,1641.5,1714.7
-Combined Liability ($b),2662.0,2667.7,2782.4,2354.8,2850.0,3514.9,3741.1,3876.0,4059.6,4457.3
+Combined Liability ($b),2662.0,2667.7,2782.4,2354.8,2850.0,3514.9,3741.1,3876.0,4059.6,4463.1
 With Income Tax <= 0 (#m),92.8,98.6,99.7,131.7,125.0,100.3,101.8,103.4,104.3,100.9
 With Combined Tax <= 0 (#m),63.4,65.6,66.8,102.1,94.5,68.9,70.2,71.6,72.6,72.3
 UBI Benefits ($b),0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0

taxcalc/tests/test_reforms.py

@@ -383,4 +383,4 @@ def test_ext_reform(tests_path):
     iitax_ext = calc_ext.array('iitax')
     rdiff = iitax_ext - iitax_end
     weighted_sum_rdiff = (rdiff * calc_end.array('s006')).sum() * 1.0e-9
-    assert np.allclose([weighted_sum_rdiff], [-224.42], rtol=0.0, atol=0.01)
+    assert np.allclose([weighted_sum_rdiff], [-232.43], rtol=0.0, atol=0.01)