Merge pull request #2217 from martinholmer/fix-rtr-test

Strengthen testing of 2017_law.json and TCJA.json reform files

read-the-docs/source/conf.py

@@ -119,6 +119,7 @@ def __getattr__(cls, name):
         else:
             return Mock()
 
+
 MOCK_MODULES = ['numba', 'numba.jit', 'numba.vectorize', 'numba.guvectorize']
 sys.modules.update((mod_name, Mock()) for mod_name in MOCK_MODULES)
 

taxcalc/parameters.py

@@ -59,6 +59,12 @@ def set_default_vals(self, known_years=999999):
         """
         Called by initialize method and from some subclass methods.
         """
+        if isinstance(known_years, int):
+            known_years_is_int = True
+        elif isinstance(known_years, dict):
+            known_years_is_int = False
+        else:
+            raise ValueError('known_years is neither an int nor a dict')
         if hasattr(self, '_vals'):
             for name, data in self._vals.items():
                 intg_val = data.get('integer_value')
@@ -69,7 +75,10 @@ def set_default_vals(self, known_years=999999):
                     if cpi_inflated:
                         index_rates = self.indexing_rates(name)
                         if name != '_SS_Earnings_c':
-                            values = values[:known_years]
+                            if known_years_is_int:
+                                values = values[:known_years]
+                            else:
+                                values = values[:known_years[name]]
                     else:
                         index_rates = None
                     setattr(self, name,

taxcalc/policy.py

@@ -398,9 +398,14 @@ def _apply_reform_cpi_offset(self, reform):
         Call this method ONLY if _cpi_offset_in_reform returns True.
         Apply CPI offset to inflation rates and
         revert indexed parameter values in preparation for re-indexing.
-        Also, return known_years which is
-        (first cpi_offset year - start year + 1).
+        Also, return known_years which is dictionary with indexed policy
+        parameter names as keys and known_years as values.  For indexed
+        parameters included in reform, the known_years value is equal to:
+        (first_cpi_offset_year - start_year + 1).  For indexed parameters
+        not included in reform, the known_years value is equal to:
+        (max(first_cpi_offset_year, Policy.LAST_KNOWN_YEAR) - start_year + 1).
         """
+        # pylint: disable=too-many-branches
         # extrapolate cpi_offset reform
         self.set_year(self.start_year)
         first_cpi_offset_year = 0
@@ -422,8 +427,23 @@ def _apply_reform_cpi_offset(self, reform):
         for name in self._vals.keys():
             if self._vals[name]['cpi_inflated']:
                 setattr(self, name, self._vals[name]['value'])
-        # return known_years
-        return first_cpi_offset_year - self.start_year + 1
+        # construct and return known_years dictionary
+        known_years = dict()
+        kyrs_in_reform = (first_cpi_offset_year -
+                          self.start_year + 1)
+        kyrs_not_in_reform = (max(first_cpi_offset_year,
+                                  Policy.LAST_KNOWN_YEAR) -
+                              self.start_year + 1)
+        for year in sorted(reform.keys()):
+            for name in reform[year]:
+                if self._vals[name]['cpi_inflated']:
+                    if name not in known_years:
+                        known_years[name] = kyrs_in_reform
+        for name in self._vals.keys():
+            if self._vals[name]['cpi_inflated']:
+                if name not in known_years:
+                    known_years[name] = kyrs_not_in_reform
+        return known_years
 
     def _validate_parameter_names_types(self, reform):
         """

taxcalc/policy_current_law.json

@@ -4245,14 +4245,14 @@
                   [413200.00, 464850.00, 232425.00, 439000.00, 464850.00],
                   [415050.00, 466950.00, 233475.00, 441000.00, 466950.00],
                   [418400.00, 470700.00, 235350.00, 444550.00, 470700.00],
-                  [500000.0, 600000.0, 300000.0, 500000.0, 500000.0],
-                  [511450.0, 613740.0, 306870.0, 511450.0, 511450.0],
-                  [521627.86, 625953.43, 312976.71, 521627.86, 521627.86],
-                  [533312.32, 639974.78, 319987.39, 533312.32, 533312.32],
-                  [545418.51, 654502.21, 327251.11, 545418.51, 545418.51],
-                  [557581.34, 669097.61, 334548.8, 557581.34, 557581.34],
-                  [569736.61, 683683.94, 341841.97, 569736.61, 569736.61],
-                  [581985.95, 698383.14, 349191.57, 581985.95, 581985.95],
+                  [500000.0, 600000.0, 300000.0, 500000.0, 600000.0],
+                  [511450.0, 613740.0, 306870.0, 511450.0, 613740.0],
+                  [521627.86, 625953.43, 312976.71, 521627.86, 625953.43],
+                  [533312.32, 639974.78, 319987.39, 533312.32, 639974.78],
+                  [545418.51, 654502.21, 327251.11, 545418.51, 654502.21],
+                  [557581.34, 669097.61, 334548.8, 557581.34, 669097.61],
+                  [569736.61, 683683.94, 341841.97, 569736.61, 683683.94],
+                  [581985.95, 698383.14, 349191.57, 581985.95, 698383.14],
                   [506680.0, 570015.0, 285008.0, 538348.0, 570015.0]],
         "range": {"min": "_PT_brk5", "max": "_PT_brk7"},
         "out_of_range_minmsg": "for _PT_brk5",

taxcalc/reforms/2017_law.json

@@ -4,58 +4,79 @@
 // Reform_Baseline: current_law_policy.json
 // Reform_Description:
 // - Switch to unchained CPI-U calculation of 2018+ policy parameter values (0)
-// - Set pre-TCJA tax rates (1)
+// - Set pre-TCJA tax rates and brackets (1)
 // - Set pre-TCJA handling of pass-through income (2)
-// - Set pre-TCJA child tax credit (CTC) and additional CTC policy (3)
-// - Set pre-TCJA dependent credit policy parameters (4)
-// - Set pre-TCJA above the line deduction policy (5)
-// - Set pre-TCJA itemized deduction policy (6)
+// - Set pre-TCJA standard deduction and personal exemption (3)
+// - Set pre-TCJA child tax credit (CTC) and additional CTC policy (4)
+// - Set pre-TCJA dependent credit policy parameters (5)
+// - Set pre-TCJA AMT exemption parameters (6)
+// - Set pre-TCJA above the line deduction policy (7)
+// - Set pre-TCJA itemized deduction policy (8)
 // Reform_Parameter_Map:
 // - 0: _cpi_offset
-// - 1: _II_rt? and _PT_rt?
+// - 1: _II_rt?/_II_brk? and _PT_rt?/_PT_brk?
 // - 2: four _PT_excl_* parameters
-// - 3: _CTC_c and _CTC_ps and _ACTC_Income_thd
-// - 4: three different _DependentCredit_* parameters
-// - 5: three _ALD_* parameters
-// - 6: seven different _ID_* parameters
+// - 3: _STD and _II_em parameters
+// - 4: _CTC_c and _CTC_ps and _ACTC_Income_thd
+// - 5: three different _DependentCredit_* parameters
+// - 6: three different _AMT_em* parameters
+// - 7: three _ALD_* parameters
+// - 8: seven different _ID_* parameters
 // NOTE: this reform projects pre-TCJA 2017 parameter values forward using the
 //       unchained CPI-U price index.
 {
     "policy": {
         "_cpi_offset": {"2017": [0.0025]},
         "_II_rt1": {"2018": [0.10]},
+        "_II_brk1": {"2017": [[9325, 18650, 9325, 13350, 18650]]},
         "_II_rt2": {"2018": [0.15]},
+        "_II_brk2": {"2017": [[37950, 75900, 37950, 50800, 75900]]},
         "_II_rt3": {"2018": [0.25]},
+        "_II_brk3": {"2017": [[91900, 153100, 76550, 131200, 153100]]},
         "_II_rt4": {"2018": [0.28]},
+        "_II_brk4": {"2017": [[191650, 233350, 116675, 212500, 233350]]},
         "_II_rt5": {"2018": [0.33]},
+        "_II_brk5": {"2017": [[416700, 416700, 208350, 416700, 416700]]},
         "_II_rt6": {"2018": [0.35]},
+        "_II_brk6": {"2017": [[418400, 470700, 235350, 444550, 470700]]},
         "_II_rt7": {"2018": [0.396]},
         "_PT_rt1": {"2018": [0.10]},
+        "_PT_brk1": {"2017": [[9325, 18650, 9325, 13350, 18650]]},
         "_PT_rt2": {"2018": [0.15]},
+        "_PT_brk2": {"2017": [[37950, 75900, 37950, 50800, 75900]]},
         "_PT_rt3": {"2018": [0.25]},
+        "_PT_brk3": {"2017": [[91900, 153100, 76550, 131200, 153100]]},
         "_PT_rt4": {"2018": [0.28]},
+        "_PT_brk4": {"2017": [[191650, 233350, 116675, 212500, 233350]]},
         "_PT_rt5": {"2018": [0.33]},
+        "_PT_brk5": {"2017": [[416700, 416700, 208350, 416700, 416700]]},
         "_PT_rt6": {"2018": [0.35]},
+        "_PT_brk6": {"2017": [[418400, 470700, 235350, 444550, 470700]]},
         "_PT_rt7": {"2018": [0.396]},
-        "_PT_excl_rt": {"2018": [0.0]},
+        "_PT_excl_rt": {"2018": [0]},
         "_PT_excl_wagelim_rt": {"2018": [9e99]},
-        "_PT_excl_wagelim_thd": {"2018": [[0.0, 0.0, 0.0, 0.0, 0.0]]},
-        "_PT_excl_wagelim_prt": {"2018": [[0.0, 0.0, 0.0, 0.0, 0.0]]},
-        "_CTC_c": {"2018": [1000.0]},
-        "_CTC_ps": {"2018": [[75000.0, 110000.0, 55000.0, 75000.0, 75000.0]]},
-        "_ACTC_Income_thd": {"2018": [3000.0]},
-        "_DependentCredit_Child_c": {"2018": [0.0]},
-        "_DependentCredit_Nonchild_c": {"2018": [0.0]},
+        "_PT_excl_wagelim_thd": {"2018": [[0, 0, 0, 0, 0]]},
+        "_PT_excl_wagelim_prt": {"2018": [[0, 0, 0, 0, 0]]},
+        "_STD": {"2017": [[6350, 12700, 6350, 9350, 12700]]},
+        "_II_em": {"2017": [4050]},
+        "_CTC_c": {"2018": [1000]},
+        "_CTC_ps": {"2018": [[75000, 110000, 55000, 75000, 75000]]},
+        "_ACTC_Income_thd": {"2018": [3000]},
+        "_DependentCredit_Child_c": {"2018": [0]},
+        "_DependentCredit_Nonchild_c": {"2018": [0]},
         "_DependentCredit_before_CTC": {"2018": [false]},
-        "_ALD_AlimonyPaid_hc": {"2019": [0.0]},
-        "_ALD_AlimonyReceived_hc": {"2019": [1.0]},
-        "_ALD_DomesticProduction_hc": {"2018": [0.0]},
+        "_AMT_em": {"2017": [[54300, 84500, 42250, 54300, 84500]]},
+        "_AMT_em_ps": {"2017": [[120700, 160900, 80450, 120700, 160900]]},
+        "_AMT_em_pe": {"2017": [249450]},
+        "_ALD_AlimonyPaid_hc": {"2019": [0]},
+        "_ALD_AlimonyReceived_hc": {"2019": [1]},
+        "_ALD_DomesticProduction_hc": {"2018": [0]},
         "_ID_prt": {"2018": [0.03]},
-        "_ID_crt": {"2018": [0.8]},
+        "_ID_crt": {"2018": [0.80]},
         "_ID_Charity_crt_all": {"2018": [0.5]},
-        "_ID_Casualty_hc": {"2018": [0.0]},
+        "_ID_Casualty_hc": {"2018": [0]},
         "_ID_AllTaxes_c": {"2018": [[9e99, 9e99, 9e99, 9e99, 9e99]]},
-        "_ID_Miscellaneous_hc": {"2018": [0.0]},
+        "_ID_Miscellaneous_hc": {"2018": [0]},
         "_ID_Medical_frt": {"2017": [0.1]}
     }
 }

taxcalc/reforms/TCJA.json

@@ -1,14 +1,15 @@
 // Title: Tax Cuts and Jobs Act, final version
-// Reform_File_Author: Cody Kallen
-// Reform_Reference: http://docs.house.gov/billsthisweek/20171218/CRPT-115HRPT-466.pdf
+// Reform_File_Author: Cody Kallen (with updates by Martin Holmer)
+// Reform_Reference: 2018 IRS forms and this URL:
+//        http://docs.house.gov/billsthisweek/20171218/CRPT-115HRPT-466.pdf
 // Reform_Baseline: 2017_law.json
 // Reform_Description:
 // -  New personal income tax schedule (regular/non-AMT/non-pass-through) (1)
 // -  New pass-through income tax schedule (2)
 // -  New standard deductions (3)
 // -  Repeal personal exemption (4)
 // -  Modification to child tax credit, nonrefundable dependent credits (5)
-// -  Modification of Alternative Minimum Tax exemption (6)
+// -  Modification of Alternative Minimum Tax exemption parameters (6)
 // -  Changes to certain above the line deductions (7)
 // -  Changes to itemized deductions (8)
 // -  Switch to chained CPI from CPI-U for tax parameter adjustment (9)
@@ -18,16 +19,16 @@
 // - 3: _STD (can safely ignore WARNINGs about 2026+ values)
 // - 4: _II_em
 // - 5: _DependentCredit_*, _CTC_c, _CTC_ps, _ACTC_Income_thd
-// - 6: _AMT_rt*
+// - 6: _AMT_em*
 // - 7: _ALD_*
 // - 8: _ID_* (can safely ignore WARNINGs about values for several parameters)
 // - 9: _cpi_offset
-// Note: _II_rt*, _PT_rt*, _STD and _II_em are rounded to the nearest integer value.
+// Note: _II_brk*, _PT_brk*, _STD, _II_em are rounded to nearest integer value
 {
     "policy": {
         "_II_rt1":
-            {"2018": [0.1],
-             "2026": [0.1]},
+            {"2018": [0.10],
+             "2026": [0.10]},
         "_II_rt2":
             {"2018": [0.12],
              "2026": [0.15]},
@@ -62,11 +63,11 @@
             {"2018": [[200000, 400000, 200000, 200000, 400000]],
              "2026": [[502356, 502356, 251178, 502356, 502356]]},
         "_II_brk6":
-            {"2018": [[500000, 600000, 300000, 500000, 500000]],
+            {"2018": [[500000, 600000, 300000, 500000, 600000]],
              "2026": [[504406 ,567457, 283728, 535931, 567457]]},
         "_PT_rt1":
-            {"2018": [0.1],
-             "2026": [0.1]},
+            {"2018": [0.10],
+             "2026": [0.10]},
         "_PT_rt2":
             {"2018": [0.12],
              "2026": [0.15]},
@@ -101,7 +102,7 @@
             {"2018": [[200000, 400000, 200000, 200000, 400000]],
              "2026": [[502356, 502356, 251178, 502356, 502356]]},
         "_PT_brk6":
-            {"2018": [[500000, 600000, 300000, 500000, 500000]],
+            {"2018": [[500000, 600000, 300000, 500000, 600000]],
              "2026": [[504406, 567457, 283728, 535931, 567457]]},
         "_PT_excl_rt":
             {"2018": [0.2],
@@ -148,6 +149,8 @@
         "_AMT_em_ps":
             {"2018": [[500000, 1000000, 500000, 500000, 1000000]],
              "2026": [[145511, 193974, 96987, 145511, 193974]]},
+        "_AMT_em_pe":
+            {"2018": [718800]},
         "_ALD_DomesticProduction_hc":
             {"2018": [1],
              "2026": [0]},
@@ -161,10 +164,10 @@
             {"2018": [[250000, 500000, 250000, 250000, 500000]],
              "2026": [[9e99, 9e99, 9e99, 9e99, 9e99]]},
         "_ID_prt":
-            {"2018": [0],
+            {"2018": [0.00],
              "2026": [0.03]},
         "_ID_crt":
-            {"2018": [1],
+            {"2018": [1.0],
              "2026": [0.8]},
         "_ID_Charity_crt_all":
             {"2018": [0.6],
@@ -180,7 +183,7 @@
              "2026": [0]},
         "_ID_Medical_frt":
             {"2017": [0.075],
-             "2019": [0.1]},
+             "2019": [0.100]},
         "_cpi_offset":
             {"2017": [-0.0025]}  
     }