Add stage 3 adjustment ratios

inctax.py

@@ -85,6 +85,13 @@ def main():
                               'adjusted in any way.'),
                         default=False,
                         action="store_true")
+    parser.add_argument('--adjust',
+                        help=('optional flag that triggers the default '
+                              'adjustment logic built into the Tax-Calculator '
+                              'that will adjust the distribution of income.'),
+                        default=False,
+                        action="store_true")
+
     parser.add_argument('--weights',
                         help=('optional flag that causes OUTPUT to have an '
                               'additional variable [29] containing the s006 '
@@ -176,6 +183,7 @@ def main():
                          assump=args.assump,
                          exact_calculations=args.exact,
                          blowup_input_data=args.blowup,
+                         adjust_input_data=args.adjust,
                          output_weights=args.weights,
                          output_records=args.records,
                          csv_dump=args.csvdump)

taxcalc/comparison/reform_results.txt

@@ -21,7 +21,7 @@ Tax-Calculator,0.8,0.9,1.0,1.1
 SOCIAL SECURITY TAXABILITY
 ""
 Exclusion of untaxed social security and railroad retirement
-Tax-Calculator,39.1,40.3,42.0,44.2
+Tax-Calculator,38.4,39.6,41.3,43.4
 Tax Expenditure,39,42,44,47
 Budget Options,35,37,38,40
 ""
@@ -39,7 +39,7 @@ Eliminate adjustment for self-employment tax
 Tax-Calculator,4.1,4.3,4.7,5.0
 ""
 Eliminate adjustment for self-employed health insurance
-Tax-Calculator,5.8,5.9,6.2,6.4
+Tax-Calculator,5.7,5.9,6.1,6.4
 ""
 Eliminate adjustment for alimony payments
 Tax-Calculator,2.1,2.2,2.3,2.4
@@ -50,7 +50,7 @@ Tax-Calculator,0.1,0.1,0.1,0.1
 EXEMPTION
 ""
 Increase personal and dependent exemption amount by 1000
-Tax-Calculator,-32.4,-34.6,-39.4,-40.8
+Tax-Calculator,-32.3,-34.5,-39.2,-40.7
 ""
 Increase personal exemption phaseout starting AGI by 10,000
 Tax-Calculator,-0.1,-0.1,-0.1,-0.2
@@ -61,43 +61,43 @@ Tax-Calculator,0.2,0.2,0.2,0.2
 STANDARD DEDUCTION
 ""
 Increase standard deduction by 100
-Tax-Calculator,-1.0,-2.5,-4.1,-4.3
+Tax-Calculator,-1.0,-2.5,-4.1,-4.2
 ""
 Increase additional standard deduction for aged and blind by 100
-Tax-Calculator,-0.3,-0.3,-0.4,-0.5
+Tax-Calculator,-0.2,-0.3,-0.4,-0.5
 ""
 ITEMIZED DEDUCTION
 ""
 Real Estate
-Tax-Calculator,36.1,38.2,40.2,42.1
+Tax-Calculator,36.0,38.1,40.1,42.1
 Tax Expenditure,34,36,39,41
 ""
 Home Mortgage
 Tax-Calculator,69.4,74.7,79.8,84.6
 Tax Expenditure,75,82,88,93
 ""
 Both real estate and state and local
-Tax-Calculator,101.7,107.7,113.3,118.6
+Tax-Calculator,101.6,107.6,113.2,118.6
 Tax Expenditure,75,82,88,93
 ""
 State & Local
 Tax-Calculator,67.3,70.9,74.3,77.4
 Tax Expenditure,59,63,67,71
 ""
 Medical
-Tax-Calculator,8.1,8.6,7.9,8.1
+Tax-Calculator,8.0,8.4,7.8,8.0
 Tax Expenditure,11,12,13,14
 ""
 Casualty
 Tax-Calculator,0.5,0.5,0.5,0.6
 Tax Expenditure,0,0,0,0
 ""
 Charitable
-Tax-Calculator,46.7,49.3,51.7,53.9
+Tax-Calculator,46.7,49.3,51.8,54.1
 Tax Expenditure,46,47,48,50
 ""
 Decrease AGI floor for miscellaneous expenses by 1 pts
-Tax-Calculator,-2.8,-2.9,-3.1,-3.2
+Tax-Calculator,-2.8,-3.0,-3.1,-3.2
 ""
 Increase Itemized deduction maximum phaseout by 10%
 Tax-Calculator,0.2,0.2,0.2,0.2
@@ -106,10 +106,10 @@ Increase Itemized Deduction phaseout starting AGI by 10,000
 Tax-Calculator,0.1,0.1,0.0,0.0
 ""
 Increase Itemized Deduction phaseout rate by 1 pts
-Tax-Calculator,4.4,4.5,4.7,4.8
+Tax-Calculator,4.4,4.6,4.8,4.9
 ""
 limit the tax value of ID to 6% of AGI
-Tax-Calculator,19.9,20.9,21.9,23.0
+Tax-Calculator,19.9,20.8,21.9,22.9
 Budget Options,11,9,8,7
 ""
 CAPITAL GAIN
@@ -118,21 +118,21 @@ Increase long term cap gain and dividends tax rates by 2 percentage, no behavior
 Tax-Calculator,18.5,19.9,20.2,20.4
 ""
 Increase long term cap gain and dividends tax rates by 2 percentage, BE_cg elasticity assumed to be -3.67
-Tax-Calculator,4.3,4.5,4.6,4.7
+Tax-Calculator,4.3,4.4,4.6,4.7
 Budget Options,5,5,5,6
 ""
 REGULAR TAXES
 ""
 Increase each bracket rate by 1%
-Tax-Calculator,58.8,61.3,64.0,66.5
+Tax-Calculator,58.8,61.3,64.1,66.6
 Budget Options,56,60,65,69
 ""
 Increase top 4 rates by 1%
-Tax-Calculator,14.1,14.7,15.2,15.5
+Tax-Calculator,14.3,14.9,15.4,15.7
 Budget Options,11,12,14,15
 ""
 Increase top 2 rates by 1%
-Tax-Calculator,9.3,9.5,9.7,9.8
+Tax-Calculator,9.4,9.7,9.9,10.0
 Budget Options,7,8,9,10
 ""
 Alternative Minimum Tax
@@ -153,12 +153,12 @@ Tax-Calculator,2.7,2.9,3.1,3.2
 Alternative Minimum Tax
 ""
 Increase AMT rate under the surtax threshold by 2 pts
-Tax-Calculator,27.9,29.8,31.4,32.9
+Tax-Calculator,27.9,29.8,31.4,33.0
 ""
 Alternative Minimum Tax
 ""
 Increase AMT rate above the surtax threshold by 2 pts
-Tax-Calculator,9.0,9.6,10.2,10.7
+Tax-Calculator,9.1,9.6,10.2,10.7
 ""
 Increase AMT surtax threshold by 10,000
 Tax-Calculator,-0.5,-0.7,-0.9,-0.9
@@ -178,7 +178,7 @@ Tax-Calculator,-0.2,-0.2,-0.2,-0.2
 REFUNDABLE CREDIT
 ""
 Earned income tax credit, total
-Tax-Calculator,65.4,64.8,64.6,66.2
+Tax-Calculator,65.5,64.8,64.7,66.3
 Tax Expenditure,70,71,72,70
 ""
 Increase EITC phaseout rate by 1 pts
@@ -199,7 +199,7 @@ Tax-Calculator,0.0,0.0,0.0,0.0
 OTHER TAXES
 ""
 Eliminate Net Investment Income Tax
-Tax-Calculator,-36.3,-39.3,-39.7,-40.0
+Tax-Calculator,-37.1,-40.1,-40.6,-40.9
 Tax Expenditure,-33,-35,-37,-39
 ""
 Increase Net Investment Income Tax threshold by 10,000
@@ -211,10 +211,10 @@ Increase Personal Refundable credit amount to 1000
 Tax-Calculator,-164.9,-170.6,-177.5,-184.4
 ""
 Increase Personal Refundable credit amount to 1000 with phaseout starting at AGI 10,000 and phaseout rate at 0.01
-Tax-Calculator,-109.1,-112.4,-116.6,-120.9
+Tax-Calculator,-109.3,-112.6,-116.8,-121.2
 ""
 FAIR SHARE TAX
 ""
 Increase FST rate from zero to 0.30 beginning in 2017
-Tax-Calculator,42.3,42.2,42.1,42.6
+Tax-Calculator,41.7,41.6,41.5,41.9
 Tax Foundation: 321 ten-year(2016-25) static estimate

taxcalc/incometaxio.py

@@ -87,7 +87,7 @@ class instance: IncomeTaxIO
 
     def __init__(self, input_data, tax_year, reform, assump,
                  exact_calculations,
-                 blowup_input_data, output_weights,
+                 blowup_input_data, adjust_input_data, output_weights,
                  output_records, csv_dump):
         """
         IncomeTaxIO class constructor.
@@ -164,24 +164,50 @@ def __init__(self, input_data, tax_year, reform, assump,
         # read input file contents into Records object
         if blowup_input_data:
             if output_weights:
-                recs = Records(data=input_data,
-                               exact_calculations=exact_calculations)
+                if adjust_input_data:
+                    recs = Records(data=input_data,
+                                   exact_calculations=exact_calculations)
+                else:
+                    recs = Records(data=input_data,
+                                   exact_calculations=exact_calculations,
+                                   adjust_ratios=None)
             else:
-                recs = Records(data=input_data,
-                               exact_calculations=exact_calculations,
-                               weights=None)
+                if adjust_input_data:
+                    recs = Records(data=input_data,
+                                   exact_calculations=exact_calculations,
+                                   weights=None)
+                else:
+                    recs = Records(data=input_data,
+                                   exact_calculations=exact_calculations,
+                                   adjust_ratios=None,
+                                   weights=None)
         else:
             if output_weights:
-                recs = Records(data=input_data,
-                               exact_calculations=exact_calculations,
-                               blowup_factors=None,
-                               start_year=tax_year)
+                if adjust_input_data:
+                    recs = Records(data=input_data,
+                                   exact_calculations=exact_calculations,
+                                   blowup_factors=None,
+                                   start_year=tax_year)
+                else:
+                    recs = Records(data=input_data,
+                                   exact_calculations=exact_calculations,
+                                   blowup_factors=None,
+                                   adjust_ratios=None,
+                                   start_year=tax_year)
             else:
-                recs = Records(data=input_data,
-                               exact_calculations=exact_calculations,
-                               blowup_factors=None,
-                               weights=None,
-                               start_year=tax_year)
+                if adjust_input_data:
+                    recs = Records(data=input_data,
+                                   exact_calculations=exact_calculations,
+                                   blowup_factors=None,
+                                   weights=None,
+                                   start_year=tax_year)
+                else:
+                    recs = Records(data=input_data,
+                                   exact_calculations=exact_calculations,
+                                   blowup_factors=None,
+                                   adjust_ratios=None,
+                                   weights=None,
+                                   start_year=tax_year)
         # create Calculator object
         con = Consumption()
         con.update_consumption(con_d)

taxcalc/puf_ratios.csv

@@ -0,0 +1,18 @@
+,BIN_0,BIN_1,BIN_2,BIN_3,BIN_4,BIN_5,BIN_6,BIN_7,BIN_8,BIN_9,BIN_10,BIN_11,BIN_12,BIN_13,BIN_14,BIN_15,BIN_16,BIN_17,BIN_18
+INT2010,0.894570657511,0.277936915309,0.905851867059,0.865550027979,0.862370124368,0.939010546172,0.854594552658,0.841921125239,0.801319283113,0.832911751911,0.920278986285,0.932635890516,1.02741582794,1.0364097442,1.06437329288,1.0367531046,1.06848339321,1.0185821615,2.84172042524
+INT2011,1.10672363651,0.889333330304,0.744717716945,0.822829719314,0.888355355771,0.800847021222,0.888039758719,0.9235984934,0.980486770542,0.904283950902,1.02959505892,1.00779637961,1.06734222294,1.04626981483,1.04299793962,1.10077470334,1.09006709516,1.15686454569,1.02765479069
+INT2012,0.828155525174,0.914660166907,0.853336496358,0.860587814233,0.737688316334,0.827657759705,0.819199293758,0.79655237166,0.832759302563,0.873719451169,0.888181974719,1.00023811743,1.05528059309,1.02483064366,0.915856372804,1.00296501146,0.966196397791,1.16743843535,1.38060882956
+INT2013,1.13897644483,0.784182359895,0.754171760532,0.76018499586,0.885769589089,0.856216681324,0.926420260632,0.893968942552,0.833220635914,0.876497424882,0.997938730096,0.983074986778,1.00508265524,1.03613142335,1.18838687541,1.11871454573,1.18281801887,1.02526237543,1.17732163416
+INT2014,0.925133833279,0.921968806824,0.853323973582,0.766595101667,0.834162259466,0.866174994362,0.984158261912,0.858449655851,0.828309014512,1.02501023984,0.847681686262,1.07633139864,1.03664003313,0.951169538521,1.03164883753,1.06051639002,1.01735202653,1.06416167641,1.04248041776
+INT2015,1.00974066398,1.00422248817,0.97310803284,0.96721560407,0.976221484037,0.962705727651,0.985406121339,1.00619878485,1.00685432684,1.03338627906,1.03780482171,1.01453670092,1.02772001432,1.01317874185,0.959524456305,0.93761270802,0.970836935276,0.965537518163,0.899348501668
+INT2016,0.997233067712,0.991679928803,0.968920774411,0.964638004354,0.972178922261,0.967356703977,0.983979905487,0.991287990837,0.995553529264,1.00451070918,1.00946305895,0.994072263012,1.00161104447,1.00988364386,1.00528874276,1.00809737128,1.0114498475,1.03687421759,1.04540950687
+INT2017,1.00020025711,0.997368680599,0.963548507444,0.955590516209,0.962158997023,0.973242287677,0.975108780722,0.995907303522,1.00527108467,1.00430214894,0.994569189736,0.99550614219,1.00388325279,1.01042676914,1.00857972272,1.01907257264,1.03491043712,1.04278549179,1.01616895332
+INT2018,0.993180991967,0.981250571127,0.964583038123,0.963459458638,0.970806796955,0.974760715767,0.979385506194,0.980894657558,0.990647008563,0.991040898293,1.00030055116,0.993261483622,0.996850161176,0.996984974053,1.02909632393,1.03056596077,1.06167542629,1.09482859975,1.04890455969
+INT2019,0.978129160696,0.984092169449,0.976217494533,0.986961985687,0.990935243425,0.985401142393,0.986022836117,0.976652536361,0.984818779403,0.993313181425,1.011212485,1.00770209347,0.999772872887,0.986755418934,1.00901288536,1.03235035292,1.01400575457,1.06921417865,1.06092766188
+INT2020,1.03494427851,0.990237894643,0.962030413092,0.951965021376,0.962385099605,0.981347554774,0.99508948464,1.02778910538,1.03939770396,1.02465416707,0.983812168605,0.978543989005,1.01073687533,1.02335732647,1.01904956792,1.02611452117,1.01270962371,0.977565695758,0.948792988014
+INT2021,0.996653685345,0.984089065364,0.978113383754,0.980210026159,0.983013505354,0.990676796501,0.989696689744,0.991723304633,1.00295505973,1.00374286944,1.00147372804,0.999407064025,0.9988951009,0.992160703194,1.00518671827,1.01031097612,1.01875183058,1.07745190473,1.01592134238
+INT2022,0.984010833382,0.984480850273,0.986114958659,0.999678273231,0.99712739969,0.990910462587,0.986460422566,0.999346974682,0.977917503104,1.00775386156,1.01052235142,1.01088837326,0.999379082098,0.984445713327,0.998857529857,1.00255607971,0.99836032652,1.01400379613,1.04031483574
+INT2023,1.01502858594,0.985335460664,0.968950764435,0.967568205456,0.97957997814,0.991273191883,0.99713019261,1.00248630218,1.03292190103,1.0153760181,0.98372023439,0.986951696507,1.00600980075,1.01439592485,1.02526770226,1.03185365897,1.02207422903,0.993720787965,0.975648620522
+INT2024,1.00912206668,0.986413028265,0.978708191657,0.979529491113,0.984344140113,0.990170214158,1.00254157769,1.0005675355,1.01183092771,1.00181765029,0.998010404057,0.996580369769,1.00316090496,1.01025943385,1.01237259591,1.01038355305,1.01136054379,1.00141632202,1.0018815789
+INT2025,1.00057050568,0.985726747261,0.973218969426,0.977867562495,0.986102444116,0.990957746618,0.993195231355,1.0044852269,1.0089063489,1.00212945398,0.995701385524,0.99296627178,1.00433728051,1.01289298367,1.02204281459,1.01296657159,1.02212901854,1.00528003009,1.01325579112
+INT2026,1.00755127661,0.987704766664,0.975313011801,0.981617237919,0.987866706414,1.00540188392,1.00222567621,0.999078532844,1.00390542243,0.993520621968,0.99333281483,0.998577424229,1.00249225677,1.01064361289,1.01358549246,1.00895519969,1.01404750649,1.00628883564,1.02196559012

taxcalc/records.py

@@ -42,6 +42,12 @@ class Records(object):
         None creates empty blowup-factors DataFrame;
         default value is filename of the default blowup factors.
 
+    adjust_ratios: string or Pandas DataFrame or None
+        string describes CSV file in which adjustment ratios reside;
+        DataFrame already contains adjustment ratios;
+        None creates empty adjustment-ratios DataFrame;
+        default value is filename of the default adjustment ratios.
+
     weights: string or Pandas DataFrame or None
         string describes CSV file in which weights reside;
         DataFrame already contains weights;
@@ -91,6 +97,8 @@ class instance: Records
     WEIGHTS_PATH = os.path.join(CUR_PATH, WEIGHTS_FILENAME)
     BLOWUP_FACTORS_FILENAME = 'growfactors.csv'
     BLOWUP_FACTORS_PATH = os.path.join(CUR_PATH, BLOWUP_FACTORS_FILENAME)
+    ADJUST_RATIOS_FILENAME = 'puf_ratios.csv'
+    ADJUST_RATIOS_PATH = os.path.join(CUR_PATH, ADJUST_RATIOS_FILENAME)
 
     # specify set of input variables used in Tax-Calculator calculations:
     USABLE_READ_VARS = set([
@@ -121,7 +129,7 @@ class instance: Records
         'MARS', 'MIDR', 'RECID', 'filer', 'cmbtp',
         'age_head', 'age_spouse', 'blind_head', 'blind_spouse',
         'nu13', 'elderly_dependent',
-        's006', 'nu05'])
+        's006', 'nu05', 'agi_bin'])
 
     # specify set of input variables that MUST be read by Tax-Calculator:
     MUST_READ_VARS = set(['RECID', 'MARS'])
@@ -133,7 +141,7 @@ class instance: Records
         'n24', 'XTOT',
         'MARS', 'MIDR', 'RECID', 'filer',
         'age_head', 'age_spouse', 'blind_head', 'blind_spouse',
-        'nu13', 'elderly_dependent'])
+        'nu13', 'elderly_dependent', 'agi_bin'])
 
     # specify set of Record variables that are calculated by Tax-Calculator:
     CALCULATED_VARS = set([
@@ -176,6 +184,7 @@ def __init__(self,
                  data='puf.csv',
                  exact_calculations=False,
                  blowup_factors=BLOWUP_FACTORS_PATH,
+                 adjust_ratios=ADJUST_RATIOS_PATH,
                  weights=WEIGHTS_PATH,
                  start_year=PUFCSV_YEAR):
         """
@@ -201,11 +210,14 @@ def __init__(self,
                            rtol=0.0, atol=0.001):
             msg = 'expression "e00600 >= e00650" is not true for every record'
             raise ValueError(msg)
-        # read extrapolation blowup factors and sample weights
+        # read extrapolation blowup factors, adjustment ratios, and
+        # sample weights
         self.BF = None
         self._read_blowup(blowup_factors)
         self.WT = None
         self._read_weights(weights)
+        self.ADJ = None
+        self._read_adjust(adjust_ratios)
         # weights must be same size as tax record data
         if not self.WT.empty and self.dim != len(self.WT):
             frac = float(self.dim) / len(self.WT)
@@ -241,6 +253,8 @@ def increment_year(self):
         self._current_year += 1
         # apply Stage 1 Extrapolation blowup factors
         self._blowup(self.current_year)
+        # apply Stage 3 adjustment ratios
+        self._adjust(self.current_year)
         # specify Stage 2 Extrapolation sample weights
         wt_colname = 'WT{}'.format(self.current_year)
         if wt_colname in self.WT.columns:
@@ -355,6 +369,14 @@ def _blowup(self, year):
         self.p87521 *= ATXPY
         self.cmbtp *= ATXPY
 
+    def _adjust(self, year):
+        """
+        Adjust value of income variables to match SOI distributions
+        """
+        if len(self.ADJ) != 0:
+            # Interest income
+            self.e00300 *= self.ADJ['INT{}'.format(year)][self.agi_bin]
+
     def _read_data(self, data, exact_calcs):
         """
         Read Records data from file or use specified DataFrame as data.
@@ -485,3 +507,27 @@ def _read_blowup(self, blowup_factors):
                    'or a Pandas DataFrame')
             raise ValueError(msg)
         setattr(self, 'BF', BF)
+
+    def _read_adjust(self, adjust_ratios):
+        """
+        Read Records adjustment ratios from file or uses specified DataFrame
+        as data or creates empty DataFrame if None
+        """
+        if adjust_ratios is None:
+            ADJ = pd.DataFrame({'nothing': []})
+            setattr(self, 'ADJ', ADJ)
+            return
+        if isinstance(adjust_ratios, pd.DataFrame):
+            ADJ = adjust_ratios
+        elif isinstance(adjust_ratios, six.string_types):
+            if os.path.isfile(adjust_ratios):
+                ADJ = pd.read_csv(adjust_ratios, index_col=0)
+            else:
+                ADJ = Records._read_egg_csv('adjust_ratios',
+                                            Records.ADJUST_RATIOS_FILENAME)
+            ADJ = ADJ.transpose()
+        else:
+            msg = ('adjust_ratios is not None or a string'
+                   'or a Pandas DataFrame')
+            raise ValueError(msg)
+        setattr(self, 'ADJ', ADJ)