Reinstate personal exemption phaseout (PEP) in 2026

taxcalc/policy_current_law.json

@@ -828,7 +828,14 @@
                       2016,
                       2017,
                       2018,
-                      2019],
+                      2019,
+                      2020,
+                      2021,
+                      2022,
+                      2023,
+                      2024,
+                      2025,
+                      2026],
         "indexable": true,
         "indexed": true,
         "vi_name": "MARS",
@@ -840,7 +847,14 @@
                   [259400.0, 311300.0, 155650.0, 285350.0, 311300.0],
                   [261500.0, 313800.0, 156900.0, 287650.0, 313800.0],
                   [9e99, 9e99, 9e99, 9e99, 9e99],
-                  [9e99, 9e99, 9e99, 9e99, 9e99]],
+                  [9e99, 9e99, 9e99, 9e99, 9e99],
+                  [9e99, 9e99, 9e99, 9e99, 9e99],
+                  [9e99, 9e99, 9e99, 9e99, 9e99],
+                  [9e99, 9e99, 9e99, 9e99, 9e99],
+                  [9e99, 9e99, 9e99, 9e99, 9e99],
+                  [9e99, 9e99, 9e99, 9e99, 9e99],
+                  [9e99, 9e99, 9e99, 9e99, 9e99],
+                  [316457.0, 379748.0, 189874.0, 348102.0, 379748.0]],
         "valid_values": {"min": 0, "max": 9e99},
         "invalid_minmsg": "",
         "invalid_maxmsg": "",

taxcalc/tests/cpscsv_agg_expect.csv

@@ -2,22 +2,22 @@
 Returns (#m),160.3,162.9,165.3,167.5,169.8,171.9,174.1,176.2,178.4,180.6
 AGI ($b),10451.2,10994.1,11545.0,12109.4,12655.1,13180.4,13724.6,14296.7,14857.0,15433.8
 Itemizers (#m),69.6,29.5,31.4,32.6,33.6,34.6,35.5,36.6,37.6,82.5
-Itemized Deduction ($b),1499.4,801.3,864.9,913.3,964.5,1016.5,1069.8,1126.9,1186.3,2344.1
+Itemized Deduction ($b),1499.4,801.3,864.9,913.3,964.5,1016.5,1069.8,1126.9,1186.3,2343.9
 Standard Deduction Filers (#m),90.6,133.3,133.9,134.9,136.1,137.3,138.6,139.7,140.8,98.1
-Standard Deduction ($b),818.3,2289.9,2338.6,2398.6,2477.0,2556.6,2638.0,2718.2,2798.0,1070.7
-Personal Exemption ($b),1279.6,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,1743.0
-Taxable Income ($b),7391.5,8368.0,8824.8,9298.2,9737.1,10155.0,10589.7,11049.4,11496.1,11045.1
-Regular Tax ($b),1407.9,1423.7,1513.1,1612.6,1701.2,1783.7,1868.0,1956.3,2041.8,2198.2
-AMT Income ($b),9604.3,10429.0,10932.7,11462.3,11968.2,12452.9,12955.0,13482.0,13994.9,14105.0
-AMT Liability ($b),16.5,1.4,1.5,1.5,1.4,1.4,1.4,1.4,1.4,34.7
-AMT Filers (#m),4.2,0.3,0.7,0.7,0.7,0.7,0.7,0.7,0.7,6.6
-Tax before Credits ($b),1424.5,1425.2,1514.6,1614.1,1702.6,1785.1,1869.4,1957.7,2043.2,2232.8
+Standard Deduction ($b),818.3,2289.9,2338.6,2398.6,2477.0,2556.6,2638.0,2718.2,2798.0,1071.0
+Personal Exemption ($b),1279.6,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,1705.9
+Taxable Income ($b),7391.5,8368.0,8824.8,9298.2,9737.1,10155.0,10589.7,11049.4,11496.1,11082.1
+Regular Tax ($b),1407.9,1423.7,1513.1,1612.6,1701.2,1783.7,1868.0,1956.3,2041.8,2211.2
+AMT Income ($b),9604.3,10429.0,10932.7,11462.3,11968.2,12452.9,12955.0,13482.0,13994.9,14105.1
+AMT Liability ($b),16.5,1.4,1.5,1.5,1.4,1.4,1.4,1.4,1.4,27.4
+AMT Filers (#m),4.2,0.3,0.7,0.7,0.7,0.7,0.7,0.7,0.7,6.4
+Tax before Credits ($b),1424.5,1425.2,1514.6,1614.1,1702.6,1785.1,1869.4,1957.7,2043.2,2238.6
 Refundable Credits ($b),66.9,77.7,77.5,77.1,77.6,78.9,79.5,80.0,80.7,70.3
 Nonrefundable Credits ($b),27.4,91.0,92.8,94.5,96.0,97.2,98.4,99.7,100.9,25.3
 Reform Surtaxes ($b),0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0
 Other Taxes ($b),9.3,9.8,10.4,11.0,11.5,12.0,12.5,12.9,12.3,12.9
-Ind Income Tax ($b),1339.4,1266.3,1354.8,1453.4,1540.5,1621.0,1703.9,1790.9,1873.9,2150.1
+Ind Income Tax ($b),1339.4,1266.3,1354.8,1453.4,1540.5,1621.0,1703.9,1790.9,1873.9,2155.8
 Payroll Taxes ($b),1156.4,1203.7,1262.5,1323.5,1380.9,1436.0,1493.1,1554.0,1616.9,1680.3
-Combined Liability ($b),2495.8,2470.0,2617.2,2776.9,2921.4,3057.0,3197.0,3345.0,3490.8,3830.4
+Combined Liability ($b),2495.8,2470.0,2617.2,2776.9,2921.4,3057.0,3197.0,3345.0,3490.8,3836.2
 With Income Tax <= 0 (#m),55.5,58.8,59.0,59.3,59.8,60.4,61.0,61.5,62.0,61.0
-With Combined Tax <= 0 (#m),36.0,37.7,38.3,38.9,39.6,40.3,41.1,41.8,42.5,42.2
+With Combined Tax <= 0 (#m),36.0,37.7,38.3,38.9,39.6,40.3,41.1,41.8,42.5,42.2

taxcalc/tests/pufcsv_agg_expect.csv

@@ -2,22 +2,22 @@
 Returns (#m),169.9,172.7,175.2,177.5,179.8,182.0,184.3,186.4,188.7,190.9
 AGI ($b),11286.7,12044.9,12581.3,13054.2,13531.1,14015.5,14544.2,15135.4,15750.0,16297.8
 Itemizers (#m),46.2,20.4,21.5,21.8,22.2,22.7,23.1,23.6,24.1,54.4
-Itemized Deduction ($b),1302.3,639.7,680.0,702.7,735.3,770.7,805.5,843.4,881.1,1990.4
+Itemized Deduction ($b),1302.3,639.7,680.0,702.7,735.3,770.7,805.5,843.4,881.1,1990.1
 Standard Deduction Filers (#m),123.8,152.4,153.7,155.7,157.6,159.3,161.1,162.8,164.6,136.5
-Standard Deduction ($b),1097.0,2586.3,2657.5,2743.9,2842.2,2939.9,3043.8,3143.6,3248.1,1476.9
-Personal Exemption ($b),1253.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,1695.6
-Taxable Income ($b),8207.8,9317.4,9762.5,10137.1,10500.0,10869.3,11280.9,11754.3,12249.5,11901.0
-Regular Tax ($b),1680.7,1745.7,1833.8,1904.5,1970.5,2039.0,2117.3,2210.6,2308.8,2461.6
-AMT Income ($b),10684.1,11622.6,12130.2,12587.5,13039.4,13496.4,13998.1,14559.9,15145.0,15372.7
-AMT Liability ($b),49.6,22.6,24.0,25.3,26.5,27.5,28.8,30.0,31.3,88.6
-AMT Filers (#m),5.3,0.6,1.2,1.2,1.2,1.2,1.2,1.2,1.2,7.8
-Tax before Credits ($b),1730.3,1768.4,1857.9,1929.8,1997.0,2066.5,2146.1,2240.6,2340.1,2550.2
+Standard Deduction ($b),1097.0,2586.3,2657.5,2743.9,2842.2,2939.9,3043.8,3143.6,3248.1,1477.4
+Personal Exemption ($b),1253.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,1646.5
+Taxable Income ($b),8207.8,9317.4,9762.5,10137.1,10500.0,10869.3,11280.9,11754.3,12249.5,11949.8
+Regular Tax ($b),1680.7,1745.7,1833.8,1904.5,1970.5,2039.0,2117.3,2210.6,2308.8,2479.0
+AMT Income ($b),10684.1,11622.6,12130.2,12587.5,13039.4,13496.4,13998.1,14559.9,15145.0,15372.9
+AMT Liability ($b),49.6,22.6,24.0,25.3,26.5,27.5,28.8,30.0,31.3,78.7
+AMT Filers (#m),5.3,0.6,1.2,1.2,1.2,1.2,1.2,1.2,1.2,7.5
+Tax before Credits ($b),1730.3,1768.4,1857.9,1929.8,1997.0,2066.5,2146.1,2240.6,2340.1,2557.7
 Refundable Credits ($b),104.6,120.1,121.1,121.7,123.4,126.3,128.2,129.7,132.2,117.1
 Nonrefundable Credits ($b),68.2,128.0,130.3,132.0,133.3,134.9,136.6,138.9,140.9,74.6
 Reform Surtaxes ($b),0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0
 Other Taxes ($b),40.9,48.5,49.6,48.9,49.0,49.3,50.2,51.5,53.2,53.7
-Ind Income Tax ($b),1598.4,1568.8,1656.1,1725.1,1789.4,1854.6,1931.5,2023.5,2120.2,2412.2
+Ind Income Tax ($b),1598.4,1568.8,1656.1,1725.1,1789.4,1854.6,1931.5,2023.5,2120.2,2419.7
 Payroll Taxes ($b),1108.9,1154.1,1209.2,1266.0,1319.4,1371.3,1425.5,1483.4,1543.2,1603.8
-Combined Liability ($b),2707.3,2722.9,2865.3,2991.1,3108.8,3225.9,3357.0,3506.9,3663.4,4015.9
+Combined Liability ($b),2707.3,2722.9,2865.3,2991.1,3108.8,3225.9,3357.0,3506.9,3663.4,4023.5
 With Income Tax <= 0 (#m),69.3,75.8,75.6,75.7,76.3,76.8,77.4,77.8,78.3,73.2
-With Combined Tax <= 0 (#m),40.8,42.8,43.2,43.1,43.7,44.3,44.9,45.3,45.8,44.6
+With Combined Tax <= 0 (#m),40.8,42.8,43.2,43.1,43.7,44.3,44.9,45.3,45.8,44.6

taxcalc/tests/test_parameters.py

@@ -161,7 +161,7 @@ def test_json_file_contents(tests_path, fname):
                    'PT_brk5', 'PT_brk6', 'PT_brk7',
                    'PT_qbid_taxinc_thd',
                    'ALD_BusinessLosses_c',
-                   'STD', 'II_em',
+                   'STD', 'II_em', 'II_em_ps',
                    'AMT_em', 'AMT_em_ps', 'AMT_em_pe',
                    'ID_ps', 'ID_AllTaxes_c']
     long_known_years = 2026 - first_year + 1  # for TCJA-reverting long_params