Parameterize common 'reform options'

[MattHJensen]

There are a number typical policy changes that we should parameterize for easy use:

• Switch on and off all deductions/credits (we can use 'haircut' parameters)
• Turn deductions into credits
• Flip refund-ability of credits
• Turn exemption into credit
• Add CBO Budget Options
  • Option 53: Limit the Value of Itemized Deductions
• More broadly, we should allow for a switch to a consumption tax system (x-tax) using the sources method (we may break this into another issue later). See TPC's VAT paper. We would not need to deal with a change in the price level for an x-tax. This interacts with Impute wealth from SCF for consumption tax transition #224.
• Dealing with everything in Lee-Rubio would give us practice with many of these issues.

[martinholmer]

@MattHJensen raised issue #229 in April 2015 and there has been no discussion since then.
Three of the seven boxes have been checked leaving four of the original goals unchecked.

There have been many advances in the range of reforms able to be characterized in Tax-Calculator in the two years since this issue was raised.

What, if anything, needs to be done with respect to this issue?

[MattHJensen]

I just updated this issue by checking Option 53 and Lee-Rubio. The other items are still outstanding, and most of them are blocked by data requirements. But I do think they should remain goals for Tax-Calculator.

• Switches for turning deductions into credits will require Impute itemized deduction amounts to non-itemizers taxdata#32.

• Flipping the refundability of credits requires case by case imputations.

• Microsimulation of an X-Tax requires Impute wealth from SCF for consumption tax transition taxdata#34 and should also probably come after [WIP] Corporate Income Tax Distribution #1482 as it also relies on an imputation of the split between normal and supernormal returns to savings.

Each of these projects would need some focussed attention to make headway on.

@martinholmer