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Add parameter to allow LTCG+QDIV income to be taxed as other income #973

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Oct 7, 2016
Merged

Add parameter to allow LTCG+QDIV income to be taxed as other income #973

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854cf2a
Attempt to tax LTCG+QDIV same as other income.
martinholmer Oct 7, 2016
978c369
Merge recent master changes into cg-as-ii branch.
martinholmer Oct 7, 2016
3f6f104
Fix typo in prior commit.
martinholmer Oct 7, 2016
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13 changes: 13 additions & 0 deletions taxcalc/current_law_policy.json
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Original file line number Diff line number Diff line change
Expand Up @@ -876,6 +876,19 @@
"validations": {"min": "_II_brk6"}
},

"_CG_as_II": {
"long_name": "Long term capital gains and qualified dividends taxed same as other income",
"description": "This zero/one parameter specifies whether or not long term capital gains and qualified dividends are taxed like other income.",
"irs_ref": "Current-law value is zero and Schedule D tax rules are used.",
"start_year": 2013,
"col_var": "",
"row_var": "FLPDYR",
"row_label": ["2013"],
"cpi_inflated": false,
"col_label": "",
"value": [0]
},

"_CG_rt1": {
"long_name": "Long term capital gain and qualified dividends rate 1",
"description": "The capital gain and dividends (stacked on top of regular income) that are below threshold 1 are taxed at this rate. ",
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9 changes: 7 additions & 2 deletions taxcalc/functions.py
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Original file line number Diff line number Diff line change
Expand Up @@ -155,8 +155,8 @@ def CapGains(p23250, p22250, _sep, ALD_Investment_ec, ALD_StudentLoan_HC,
c01000 = max((-3000. / _sep), c23650)
# compute ymod* variables
ymod1 = (e00200 + e00700 + e00800 + e00900 + e01400 + e01700 +
(1 - ALD_Investment_ec) *
(e00300 + e00600 + c01000 + e01100 + e01200) +
(1 - ALD_Investment_ec) * (e00300 + e00600 +
c01000 + e01100 + e01200) +
e02000 + e02100 + e02300)
ymod2 = e00400 + (0.50 * e02400) - c02900
ymod3 = (1 - ALD_StudentLoan_HC) * e03210 + e03230 + e03240
Expand Down Expand Up @@ -484,18 +484,23 @@ def GainsTax(e00650, c01000, c23650, p23250, e01100, e58990,
e24515, e24518, MARS, c04800, c05200,
II_rt1, II_rt2, II_rt3, II_rt4, II_rt5, II_rt6, II_rt7, II_rt8,
II_brk1, II_brk2, II_brk3, II_brk4, II_brk5, II_brk6, II_brk7,
CG_as_II,
CG_rt1, CG_rt2, CG_rt3, CG_rt4, CG_thd1, CG_thd2, CG_thd3,
c24516, c24517, c24520, c05700, _taxbc):
"""
GainsTax function implements (2015) Schedule D Tax Worksheet logic for
the special taxation of long-term capital gains and qualified dividends
if CG_as_II is false (that is, zero)
"""
# pylint: disable=too-many-statements,too-many-branches
if c01000 > 0. or c23650 > 0. or p23250 > 0. or e01100 > 0. or e00650 > 0.:
hasqdivltcg = 1 # has qualified dividends or long-term capital gains
else:
hasqdivltcg = 0 # no qualified dividends or long-term capital gains

if CG_as_II != 0.:
hasqdivltcg = 0 # no special taxation of qual divids and l-t cap gains

if hasqdivltcg == 1:

dwks1 = c04800
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