diff --git a/taxcalc/tests/test_records.py b/taxcalc/tests/test_records.py
index 656257dc6..26ba172f7 100644
--- a/taxcalc/tests/test_records.py
+++ b/taxcalc/tests/test_records.py
@@ -178,46 +178,6 @@ def test_default_rates_and_those_implied_by_blowup_factors(puf_1991):
     assert_array_equal(wage_growth_rates[1:], policy._wage_growth_rates[1:-1])
 
 
-def test_var_labels_txt_contents(tests_path):
-    """
-    Check that every Records variable used by taxcalc is in var_labels.txt
-    and that all variables in var_labels.txt are used by taxcalc.
-    """
-    # read variables in var_labels.txt file (checking for duplicates)
-    var_labels_path = os.path.join(tests_path, '..', 'var_labels.txt')
-    var_labels_set = set()
-    with open(var_labels_path, 'r') as varlabels:
-        msg = 'DUPLICATE VARIABLE(S) IN VAR_LABELS.TXT:\n'
-        found_duplicates = False
-        for line in varlabels:
-            var = (line.split())[0]
-            if var in var_labels_set:
-                found_duplicates = True
-                msg += 'VARIABLE= {}\n'.format(var)
-            else:
-                var_labels_set.add(var)
-        if found_duplicates:
-            raise ValueError(msg)
-    # change all Records.USABLE_READ_VARS variables to uppercase
-    var_valid_set = set()
-    for var in Records.USABLE_READ_VARS:
-        var_valid_set.add(var.upper())
-    # check for no extra var_valid variables
-    valid_less_labels = var_valid_set - var_labels_set
-    if len(valid_less_labels) > 0:
-        msg = 'VARIABLE(S) IN USABLE_READ_VARS BUT NOT VAR_LABELS.TXT:\n'
-        for var in valid_less_labels:
-            msg += 'VARIABLE= {}\n'.format(var)
-        raise ValueError(msg)
-    # check for no extra var_labels variables
-    labels_less_valid = var_labels_set - var_valid_set
-    if len(labels_less_valid) > 0:
-        msg = 'VARIABLE(S) IN VAR_LABELS.TXT BUT NOT USABLE_READ_VARS:\n'
-        for var in labels_less_valid:
-            msg += 'VARIABLE= {}\n'.format(var)
-        raise ValueError(msg)
-
-
 def test_csv_input_vars_md_contents(tests_path):
     """
     Check CSV_INPUT_VARS.md contents against Records.USABLE_READ_VARS
diff --git a/taxcalc/var_labels.txt b/taxcalc/var_labels.txt
deleted file mode 100644
index cdf9c150e..000000000
--- a/taxcalc/var_labels.txt
+++ /dev/null
@@ -1,83 +0,0 @@
-AGE_HEAD = Age in years of taxpayer (i.e., primary filer)
-AGE_SPOUSE = Age in years of spouse (i.e., secondary filer if present)
-BLIND_HEAD = zero/one indicator for taxpayer (i.e., primary filer)
-BLIND_SPOUSE = zero/one indicator for spouse (i.e., secondary filer if present)
-CMBTP = estimate of income included in AMT taxable income but not in AGI
-DSI = 1 if taxpayer claimed as a dependent on another tax return; otherwise 0
-E00200 = Salaries, wages, and tips for filing unit
-E00200P = Salaries, wages, and tips for taxpayer
-E00200S = Salaries, wages, and tips for spouse
-E00300 = Interest received
-E00400 = Tax-exempt interest
-E00600 = Total dividends included in AGI
-E00650 = Qualified dividends (a subset of Total dividends)
-E00700 = State income tax refunds
-E00800 = Alimony received
-E00900 = Business or professional net profit/loss (Schedule C) for filing unit
-E00900P = Business or professional net profit/loss (Schedule C) for taxpayer
-E00900S = Business or professional net profit/loss (Schedule C) for spouse
-E01100 = Capital gain distribution (not reported on Schedule D)
-E01200 = Other net gain or loss (Form 4797)
-E01400 = Taxable IRA distribution
-E01500 = Partial total of pensions and annuities (1040 line 16a)
-E01700 = Taxable pensions and annuities (1040 line 16b)
-E02000 = Schedule E net income or loss
-E02100 = Farm net profit or loss for filing unit
-E02100P = Farm net profit or loss for taxpayer
-E02100S = Farm net profit or loss for spouse
-E02300 = Unemployment compensation
-E02400 = Gross Social Security Benefits
-E03150 = Adjustments: Total deductible IRA payments
-E03210 = Adjustments: Student Loan Interest Deduction
-E03220 = Adjustments: Educator Exp.s Deduction (new 2002)
-E03230 = Adjustments: Tuition and Fees Deduction (new 2002)
-E03240 = Domestic Production Activity Deduction (new 2005)
-E03270 = Adjustments: Self employed health insurance deduction
-E03290 = Health Savings Account Deduction Computer Amount (new 2004)
-E03300 = Adjustments: Payments to a KEOGH plan and SEP deduction
-E03400 = Adjustments: Forfeited int. penalty- early withdraw of savings
-E03500 = Adjustments: Alimony paid
-E07240 = Retirement Savings Contribution Credit (new 2002)
-E07260 = Residential Energy Credit (new 2006)
-E07300 = Foreign tax credit - Form 1116
-E07400 = General business credit
-E07600 = Prior year minimum tax credit - Form 8801
-E09700 = Taxes: Recapture tax - Form 4255
-E09800 = Taxes: Social security tax on tip income
-E09900 = Taxes: Penalty tax on qualified retirement plans
-E11200 = Tax Payment: Excess FICA/RRTA
-E17500 = Schedule A: Total medical Exp.s
-E18400 = Schedule A: State and local income taxes
-E18500 = Schedule A: Real estate tax
-E19200 = Schedule A: Total interest deduction
-E19800 = Schedule A: Cash contribution
-E20100 = Schedule A: Other than cash
-E20400 = Schedule A: Total miscellaneous deductions subject to 2% AGI limitation
-E20500 = Schedule A: Net casualty or theft loss
-E24515 = Schedule D: Un-Recaptured Section 1250 Gain
-E24518 = Schedule D: 28% Rate Gain or Loss (new 2003)
-E26270 = Combined partnership and S corporation net income/loss (+/-)
-E27200 = Schedule E: Farm rent net income or loss
-E32800 = Form 2441 child/dependent care expense: Qualifying Individual Exp.s
-E58990 = Form 4952 investment income elected amount (line 4g)
-E62900 = Form 6251: Form 6251 foreign tax credit
-E87530 = Lifetime Learning Credit total qualified expenses (Form 8863, line 10)
-EIC = Earned Income Credit code: categorical variable
-ELDERLY_DEPENDENT = 1 if unit has elderly dependent; 0 if no elderly dependent
-F2441 = Form 2441 number of Child Care Credit qualified individuals
-F6251 = Form 6251, Alternative Minimum Tax, attached to return or not
-FILER = zero/one indicator for filing unit being in the IRS-SOI PUF sample
-FLPDYR = Filing (accounting) period (i.e., tax year)
-MARS = Marital (filing) status: categorical variable
-MIDR = Married filing separately itemized deductions requirement indicator
-N24 = Number of children eligible for Child Tax Credit
-NU13 = Number of dependents under 13
-NU05 = Number of dependents under 5
-P08000 = Other tax credits
-P22250 = Schedule D: Short-term gains less losses
-P23250 = Schedule D: Long-term gains less losses
-P25470 = Schedule E: Royalty depletion and/or rental depreciation
-P87521 = American Opportunity Credit total tentative amount (Form 8863, line 1)
-RECID = ID for filing unit
-S006 = Sample weight for filing unit
-XTOT = Total number of exemptions for filing unit