modify base for top CG rate

PSLmodels · Oct 27, 2020 · ffc2057 · ffc2057
1 parent 32c0f6d
commit ffc2057
Showing 1 changed file with 3 additions and 1 deletion.
diff --git a/taxcalc/calcfunctions.py b/taxcalc/calcfunctions.py
@@ -994,7 +994,9 @@ def GainsTax(e00650, c01000, c23650, p23250, e01100, e58990, e00200,
         dwks30 = dwks22 + dwks28
         dwks31 = dwks21 - dwks30
         dwks32 = CG_rt3 * dwks31
-        hi_base = max(0., dwks31 - CG_brk3[MARS - 1])
+        # compute total taxable CG for additional top bracket
+        cg_all = dwks20 + dwks28 + dwks31
+        hi_base = max(0., cg_all - CG_brk3[MARS - 1])
         hi_incremental_rate = CG_rt4 - CG_rt3
         highest_rate_incremental_tax = hi_incremental_rate * hi_base
         # break in worksheet lines