Merge pull request #2628 from duncanhobbs/divide-by-100

Divide CDCC parameters by 100
PSLmodels · Oct 25, 2021 · cd37b7f · cd37b7f
2 parents e3567d1 + 1cf3c04
commit cd37b7f
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Showing 4 changed files with 47 additions and 38 deletions.
diff --git a/docs/guide/policy_params.md b/docs/guide/policy_params.md
@@ -756,41 +756,41 @@ _Out-of-Range Action:_ error
 
 
 ####  `CDCC_crt`  
-_Description:_ The maximum percentage rate for the CDCC; this percentage rate decreases as AGI rises above the CDCC_ps level.  
+_Description:_ The maximum rate for the CDCC; this rate decreases as AGI rises above the CDCC_ps level.  
 _Has An Effect When Using:_ _PUF data:_ True _CPS data:_ True  
 _Can Be Inflation Indexed:_ False _Is Inflation Indexed:_ False  
 _Value Type:_ float  
 _Known Values:_  
-2013: 35.0  
-2014: 35.0  
-2015: 35.0  
-2016: 35.0  
-2017: 35.0  
-2018: 35.0  
-2019: 35.0  
-_Valid Range:_ min = 0 and max = 100  
+2013: 0.35  
+2014: 0.35  
+2015: 0.35  
+2016: 0.35  
+2017: 0.35  
+2018: 0.35  
+2019: 0.35  
+_Valid Range:_ min = 0 and max = 1  
 _Out-of-Range Action:_ error  
 
 
 ####  `CDCC_frt`  
-_Description:_ The minimum percentage rate for the first AGI phaseout of the CDCC.  
+_Description:_ The minimum rate for the first AGI phaseout of the CDCC.  
 _Has An Effect When Using:_ _PUF data:_ True _CPS data:_ True  
 _Can Be Inflation Indexed:_ False _Is Inflation Indexed:_ False  
 _Value Type:_ float  
 _Known Values:_  
-2013: 20.0  
-2014: 20.0  
-2015: 20.0  
-2016: 20.0  
-2017: 20.0  
-2018: 20.0  
-2019: 20.0  
-_Valid Range:_ min = 0 and max = 100  
+2013: 0.20  
+2014: 0.20  
+2015: 0.20  
+2016: 0.20  
+2017: 0.20  
+2018: 0.20  
+2019: 0.20  
+_Valid Range:_ min = 0 and max = 1  
 _Out-of-Range Action:_ error  
 
 
 ####  `CDCC_prt`  
-_Description:_ The CDCC credit rate is reduced by this many percentage points for each dollary of AGI over the phase-out thresholds.  
+_Description:_ The CDCC credit rate is reduced by this many percentage points for each dollar of AGI over the phase-out thresholds.  
 _Notes:_ In the law, the credit rate is reduced by 1 percentage point for every $2,000 of AGI over the limit.  
 _Has An Effect When Using:_ _PUF data:_ True _CPS data:_ True  
 _Can Be Inflation Indexed:_ False _Is Inflation Indexed:_ False  

diff --git a/taxcalc/calcfunctions.py b/taxcalc/calcfunctions.py
@@ -2119,15 +2119,23 @@ def F2441(MARS, earned_p, earned_s, f2441, CDCC_c, e32800,
     c00100: float
         Adjusted Gross Income (AGI)
     CDCC_ps: float
-        Child/dependent care credit phaseout start
+        Child/dependent care credit first phaseout start
+    CDCC_ps2: float
+        Child/dependent care credit second phaseout start
     CDCC_crt: float
-        Child/dependent care credit phaseout percentage rate ceiling
+        Child/dependent care credit phaseout rate ceiling
+    CDCC_frt: float
+        Child/dependent care credit phaseout rate floor
+    CDCC_prt: float
+        Child/dependent care credit phaseout rate
     c05800: float
         Total (regular + AMT) income tax liability before credits
     e07300: float
         Foreign tax credit from Form 1116
     c07180: float
         Credit for child and dependent care expenses from Form 2441
+    CDCC_refund: bool
+        Indicator for whether CDCC is refundable
 
     Returns
     -------
@@ -2159,7 +2167,8 @@ def F2441(MARS, earned_p, earned_s, f2441, CDCC_c, e32800,
         if c00100 > CDCC_ps2:
             crate = max(0., CDCC_frt -
                         max(((c00100 - CDCC_ps2) * CDCC_prt), 0.))
-    c33200 = c33000 * 0.01 * crate
+
+    c33200 = c33000 * crate
     # credit is limited by tax liability if not refundable
     if CDCC_refundable:
         c07180 = 0.

diff --git a/taxcalc/policy_current_law.json b/taxcalc/policy_current_law.json
@@ -14063,8 +14063,8 @@
         }
     },
     "CDCC_crt": {
-        "title": "Child & dependent care credit phaseout percentage rate ceiling",
-        "description": "The maximum percentage rate for the CDCC; this percentage rate decreases as AGI rises above the CDCC_ps level.",
+        "title": "Child & dependent care credit phaseout rate ceiling",
+        "description": "The maximum rate for the CDCC; this rate decreases as AGI rises above the CDCC_ps level.",
         "notes": "",
         "section_1": "Nonrefundable Credits",
         "section_2": "Child And Dependent Care",
@@ -14074,21 +14074,21 @@
         "value": [
             {
                 "year": 2013,
-                "value": 35.0
+                "value": 0.350
             },
             {
                 "year": 2021,
-                "value": 50.0
+                "value": 0.500
             },
             {
                 "year": 2022,
-                "value": 35.0
+                "value": 0.350
             }
         ],
         "validators": {
             "range": {
                 "min": 0,
-                "max": 100
+                "max": 1
             }
         },
         "compatible_data": {
@@ -14097,8 +14097,8 @@
         }
     },
     "CDCC_frt": {
-        "title": "Child & dependent care credit phaseout percentage rate floor",
-        "description": "The minimum percentage rate for the first AGI phaseout of the CDCC.",
+        "title": "Child & dependent care credit phaseout rate floor",
+        "description": "The minimum rate for the first AGI phaseout of the CDCC.",
         "notes": "",
         "section_1": "Nonrefundable Credits",
         "section_2": "Child And Dependent Care",
@@ -14108,13 +14108,13 @@
         "value": [
             {
                 "year": 2013,
-                "value": 20.0
+                "value": 0.200
             }
         ],
         "validators": {
             "range": {
                 "min": 0,
-                "max": 100
+                "max": 1
             }
         },
         "compatible_data": {
@@ -14123,9 +14123,9 @@
         }
     },
     "CDCC_prt": {
-        "title": "Child & dependent care credit phaseout percentage rate",
-        "description": "The CDCC credit rate is reduced by this many percentage points for each dollary of AGI over the phase-out thresholds.",
-        "notes": "In the law, the credit rate is reduced by 1 percentage point for every $2,000 of AGI over the limit.",
+        "title": "Child & dependent care credit phaseout rate",
+        "description": "The CDCC credit rate is reduced by this many percentage points for each dollar of AGI over the phase-out thresholds.",
+        "notes": "In the law, the credit rate is reduced by 1 percentage point for every $2,000 of AGI over the limit. 0.01 / 2000 = 0.000005",
         "section_1": "Nonrefundable Credits",
         "section_2": "Child And Dependent Care",
         "indexable": false,
@@ -14134,7 +14134,7 @@
         "value": [
             {
                 "year": 2013,
-                "value": 0.0005
+                "value": 5e-06
             }
         ],
         "validators": {
@@ -18104,4 +18104,4 @@
             "cps": true
         }
     }
-}
+}
diff --git a/taxcalc/tests/test_reforms.py b/taxcalc/tests/test_reforms.py
@@ -146,7 +146,7 @@ def test_round_trip_reforms(fyear, tests_path):
          'CDCC_c': {2021: 8000, 2022: 3000},
          'CDCC_ps': {2021: 125000, 2022: 15000},
          'CDCC_ps2': {2021: 400000, 2022: 9e+99},
-         'CDCC_crt': {2021: 50.0, 2022: 35.0},
+         'CDCC_crt': {2021: 0.500, 2022: 0.350},
          'CDCC_refundable': {2021: True, 2022: False},
          'ALD_BusinessLosses_c': {
              2026: [283535.22, 567070.42, 283535.22, 283535.22, 567070.42],