Which expanded_income to use in TaxBrain/dropq difference table bins?

[martinholmer]

In many reforms, expanded_income is unchanged from the current-law baseline. But in situations where there is a difference, a question arises about how to classify filing units in expanded_income bins. Should we use the baseline expanded_income or should we use the reform expanded_income?

@MattHJensen @feenberg @Amy-Xu @andersonfrailey @hdoupe @GoFroggyRun @brittainhard @talumbau

[Amy-Xu]

It seems to me that we should use baseline expanded_income? That was the case with AGI when it's used as a bin classifier -- no matter how AGI is changed in the reform, always use the baseline AGI.

[martinholmer]

@Amy-Xu said:

It seems to me that we should use baseline expanded_income? That was the case with AGI when it's used as a bin classifier -- no matter how AGI is changed in the reform, always use the baseline AGI.

OK, but I'm unsure what you're referring to when you talks about AGI being "used as a bin classifier".
Where in Tax-Calculator do we use AGI as a bin classifier?

[feenberg]

Sorry, a thinko. I meant the baseline expanded income if that is what is used. dan

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On Fri, 1 Sep 2017, Martin Holmer wrote: @Amy-Xu said: It seems to me that we should use baseline expanded_income? That was the case with AGI when it's used as a bin classifier -- no matter how AGI is changed in the reform, always use the baseline AGI. OK, but I'm unsure what you're referring to when you talks about AGI being "used as a bin classifier". Where in Tax-Calculator do we use AGI as a bin classifier? — You are receiving this because you were mentioned. Reply to this email directly, view it on GitHub, or mute the thread.[AHvQVWCbIRNo0tPS9P81IeB4u3D67pAyks5seJt6gaJpZM4PKaBL.gif]

[martinholmer]

Seems as if @Amy-Xu and @feenberg favor using baseline expanded income or baseline AGI (if that is the income measure) to classify filing units in bins in difference tables. Anybody else want to state a view?

[MattHJensen]

I am in agreement w @Amy-Xu and @feenberg that we should use the baseline income measure for tabbing distribution tables. Otherwise a progressive reform that also moves people up the income-measure distribution might look regressive.

[martinholmer]

Thanks to everyone who responded to my question in issue #1540.
The answers were consistent and that answer has been incorporated into pull request #1537.