Rename/remove a few policy params and archive some pre-TCJA reforms

docs/cookbook/recipe01.py

@@ -1,52 +1,48 @@
 import pandas as pd
 from taxcalc import *
 
-# read two "old" reform files from Tax-Calculator website
-# ("old" means the reform files are defined relative to pre-TCJA policy)
-#   For more about the compound-reform technique used in this recipe,
-#   read answer to Question 1 of FAQ at the following URL:
-#   https://github.com/PSLmodels/Tax-Calculator/issues/1830
+# read an "old" reform file from Tax-Calculator website
+# ("old" means the reform file is defined relative to pre-TCJA policy)
 REFORMS_URL = ('https://raw.githubusercontent.com/'
                'PSLmodels/Tax-Calculator/master/taxcalc/reforms/')
 
 baseline_name = '2017_law.json'  # pre-TCJA policy
 baseline_url = REFORMS_URL + baseline_name
 baseline = Calculator.read_json_param_objects(baseline_url, None)
 
-reform1_name = 'TCJA_Senate.json'  # TCJA as orginally proposed in Senate
-reform1_url = REFORMS_URL + reform1_name
-reform2_name = 'TCJA_Reconciliation.json'  # TCJA as passed by Congress
-reform2_url = REFORMS_URL + reform2_name
+reform_name = 'TCJA.json'  # TCJA as passed by Congress
+reform_url = REFORMS_URL + reform_name
 
-# specify Policy object for static analysis of reform1 relative to pre-TCJA
-reform1 = Calculator.read_json_param_objects(reform1_url, None)
-policy1 = Policy()
-policy1.implement_reform(baseline['policy'], print_warnings=False)
-policy1.implement_reform(reform1['policy'], print_warnings=False)
+# specify Policy object for pre-TCJA baseline
+bpolicy = Policy()
+bpolicy.implement_reform(baseline['policy'], print_warnings=False)
+assert not bpolicy.parameter_errors
 
-# specify Policy object for static analysis of reform2 relative to pre-TCJA
-reform2 = Calculator.read_json_param_objects(reform2_url, None)
-policy2 = Policy()
-policy1.implement_reform(baseline['policy'], print_warnings=False)
-policy2.implement_reform(reform2['policy'], print_warnings=False)
+# specify Policy object for static analysis of reform relative to pre-TCJA
+reform = Calculator.read_json_param_objects(reform_url, None)
+rpolicy = Policy()
+rpolicy.implement_reform(baseline['policy'], print_warnings=False)
+assert not rpolicy.parameter_errors
+rpolicy.implement_reform(reform['policy'], print_warnings=False)
+assert not rpolicy.parameter_errors
 
 cyr = 2018
 
-# specify Calculator objects using policy1 and policy2 and calculate for cyr
+# specify Calculator objects using bpolicy and rpolicy and calculate for cyr
 recs = Records.cps_constructor()
-calc1 = Calculator(policy=policy1, records=recs)
+calc1 = Calculator(policy=bpolicy, records=recs)
 calc1.advance_to_year(cyr)
 calc1.calc_all()
-calc2 = Calculator(policy=policy2, records=recs)
+calc2 = Calculator(policy=rpolicy, records=recs)
 calc2.advance_to_year(cyr)
 calc2.calc_all()
 
 # compare aggregate individual income tax revenue in cyr
 iitax_rev1 = calc1.weighted_total('iitax')
 iitax_rev2 = calc2.weighted_total('iitax')
 
-# construct reform2-vs-reform1 difference table with results for income deciles
-diff_table = calc1.difference_table(calc2, 'weighted_deciles', 'iitax')
+# construct reform-vs-baseline difference table with results for income deciles
+diff_table = calc2.difference_table(calc1, 'weighted_deciles', 'iitax')
 assert isinstance(diff_table, pd.DataFrame)
 diff_extract = pd.DataFrame()
 dif_colnames = ['count', 'tax_cut', 'tax_inc',
@@ -58,12 +54,9 @@
 
 # print total revenue estimates for cyr
 # (estimates in billons of dollars rounded to nearest tenth of a billion)
-print('{}_REFORM1_iitax_rev($B)= {:.3f}'.format(cyr, iitax_rev1 * 1e-9))
-print('{}_REFORM2_iitax_rev($B)= {:.3f}'.format(cyr, iitax_rev2 * 1e-9))
+print('{}_BASELINE_iitax_rev($B)= {:.3f}'.format(cyr, iitax_rev1 * 1e-9))
+print('{}_REFORM___iitax_rev($B)= {:.3f}'.format(cyr, iitax_rev2 * 1e-9))
 print('')
 
-title = 'Extract of {} income-tax difference table by expanded-income decile'
-print(title.format(cyr))
-print('(taxfall is count of funits with cut in income tax in reform 2 vs 1)')
-print('(taxrise is count of funits with rise in income tax in reform 2 vs 1)')
-print(diff_extract.to_string())
+# print reform-vs-baseline difference table
+print(diff_extract)

docs/index.htmx

@@ -1029,15 +1029,24 @@ section.</p>
 
 <!-- Nonrefundable Credits @ Child And Dependent Care -->
 
-<!-- Nonrefundable Credits @ Child Tax Credit -->
-
 <!-- Nonrefundable Credits @ Misc. Credit Limits -->
 
 <!-- Nonrefundable Credits @ Personal Nonrefundable Credit -->
 
 <p><a href="#pol">Back to Section Contents</a></p>
 
 
+<h3 id="pol-childdependent-credits">Child/Dependent Credits</h3>
+
+<!-- Child/Dependent Credits @ Child Tax Credit -->
+
+<!-- Child/Dependent Credits @ Additional Child Tax Credit -->
+
+<!-- Child/Dependent Credits @ Other Dependent Tax Credit -->
+
+<p><a href="#pol">Back to Section Contents</a></p>
+
+
 <h3 id="pol-itemized-deductions">Itemized Deductions</h3>
 
 <!-- Itemized Deductions @ Medical Expenses -->
@@ -1098,8 +1107,6 @@ section.</p>
 
 <!-- Refundable Credits @ Earned Income Tax Credit -->
 
-<!-- Refundable Credits @ Additional Child Tax Credit -->
-
 <!-- Refundable Credits @ New Refundable Child Tax Credit -->
 
 <!-- Refundable Credits @ Personal Refundable Credit -->

taxcalc/calcfunctions.py

@@ -283,7 +283,7 @@ def ALD_InvInc_ec_base(p22250, p23250, sep,
 
 @iterate_jit(nopython=True)
 def CapGains(p23250, p22250, sep, ALD_StudentLoan_hc,
-             ALD_InvInc_ec_rt, invinc_ec_base, ALD_InvInc_ec_base_RyanBrady,
+             ALD_InvInc_ec_rt, invinc_ec_base,
              e00200, e00300, e00600, e00650, e00700, e00800,
              CG_nodiff, CG_ec, CG_reinvest_ec_rt,
              ALD_BusinessLosses_c, MARS,
@@ -301,18 +301,6 @@ def CapGains(p23250, p22250, sep, ALD_StudentLoan_hc,
     invinc = e00300 + e00600 + c01000 + e01100 + e01200
     # compute exclusion of investment income from AGI
     invinc_agi_ec = ALD_InvInc_ec_rt * max(0., invinc_ec_base)
-    # compute exclusion of investment income for Ryan-Brady plan
-    if ALD_InvInc_ec_base_RyanBrady:
-        # This RyanBrady code interprets the Blueprint reform as providing
-        # an investment income AGI exclusion for each of three investment
-        # income types (e00300, e00650, p23250) separately.  The alternative
-        # interpretation (that is not adopted here) is that the investment
-        # income AGI exclusion is calculated using a base that is the sum
-        # of those three investment income types, with the base being zero
-        # if the sum of the three is negative.
-        CG_ec_RyanBrady = (c01000 - max(-3000. / sep,
-                                        p22250 + ALD_InvInc_ec_rt * p23250))
-        invinc_agi_ec = ALD_InvInc_ec_rt * (e00300 + e00650) + CG_ec_RyanBrady
     # compute ymod1 variable that is included in AGI
     ymod1 = (e00200 + e00700 + e00800 + e01400 + e01700 +
              invinc - invinc_agi_ec + e02100 + e02300 +
@@ -1233,20 +1221,17 @@ def ChildDepTaxCredit(n24, MARS, c00100, XTOT, num, c05800,
                       c07230,
                       e07240, CR_RetirementSavings_hc,
                       c07200,
-                      CTC_c, CTC_ps, CTC_prt, exact,
-                      DependentCredit_Child_c, DependentCredit_Nonchild_c,
-                      CTC_c_under5_bonus, nu05, FilerCredit_c,
-                      c07220, dep_credit, codtc_limited):
+                      CTC_c, CTC_ps, CTC_prt, exact, ODC_c,
+                      CTC_c_under5_bonus, nu05,
+                      c07220, odc, codtc_limited):
     """
     Computes amounts on "Child Tax Credit and Credit for Other Dependents
     Worksheet" in 2018 Publication 972, which pertain to these two
     nonrefundable tax credits.
     """
     # Worksheet Part 1
-    line1 = ((CTC_c + DependentCredit_Child_c) * n24 +
-             CTC_c_under5_bonus * nu05)
-    line2 = (DependentCredit_Nonchild_c * max(0, XTOT - n24 - num) +
-             FilerCredit_c[MARS - 1])
+    line1 = CTC_c * n24 + CTC_c_under5_bonus * nu05
+    line2 = ODC_c * max(0, XTOT - n24 - num)
     line3 = line1 + line2
     modAGI = c00100  # no foreign earned income exclusion to add to AGI (line6)
     if line3 > 0. and modAGI > CTC_ps[MARS - 1]:
@@ -1273,14 +1258,14 @@ def ChildDepTaxCredit(n24, MARS, c00100, XTOT, num, c05800,
         line16 = 0.
     # separate the CTC and ODTC amounts
     c07220 = 0.  # nonrefundable CTC amount
-    dep_credit = 0.  # nonrefundable ODTC amount
+    odc = 0.  # nonrefundable ODTC amount
     if line16 > 0.:
         if line1 > 0.:
             c07220 = line16 * line1 / line3
-        dep_credit = max(0., line16 - c07220)
+        odc = max(0., line16 - c07220)
     # compute codtc_limited for use in AdditionalCTC function
     codtc_limited = max(0., line10 - line16)
-    return (c07220, dep_credit, codtc_limited)
+    return (c07220, odc, codtc_limited)
 
 
 @iterate_jit(nopython=True)
@@ -1500,14 +1485,13 @@ def CharityCredit(e19800, e20100, c00100, CR_Charity_rt, CR_Charity_f,
 
 @iterate_jit(nopython=True)
 def NonrefundableCredits(c05800, e07240, e07260, e07300, e07400,
-                         e07600, p08000, dep_credit,
+                         e07600, p08000, odc,
                          personal_nonrefundable_credit,
                          CR_RetirementSavings_hc, CR_ForeignTax_hc,
                          CR_ResidentialEnergy_hc, CR_GeneralBusiness_hc,
                          CR_MinimumTax_hc, CR_OtherCredits_hc, charity_credit,
                          c07180, c07200, c07220, c07230, c07240,
-                         c07260, c07300, c07400, c07600, c08000,
-                         DependentCredit_before_CTC):
+                         c07260, c07300, c07400, c07600, c08000):
     """
     NonRefundableCredits function sequentially limits credits to tax liability.
 
@@ -1534,13 +1518,12 @@ def NonrefundableCredits(c05800, e07240, e07260, e07300, e07400,
     # Retirement savings credit - Form 8880
     c07240 = min(e07240 * (1. - CR_RetirementSavings_hc), avail)
     avail = avail - c07240
-    if DependentCredit_before_CTC:
-        # Other dependent credit
-        dep_credit = min(dep_credit, avail)
-        avail = avail - dep_credit
     # Child tax credit
     c07220 = min(c07220, avail)
     avail = avail - c07220
+    # Other dependent credit
+    odc = min(odc, avail)
+    avail = avail - odc
     # Residential energy credit - Form 5695
     c07260 = min(e07260 * (1. - CR_ResidentialEnergy_hc), avail)
     avail = avail - c07260
@@ -1553,10 +1536,6 @@ def NonrefundableCredits(c05800, e07240, e07260, e07300, e07400,
     # Schedule R credit
     c07200 = min(c07200, avail)
     avail = avail - c07200
-    if not DependentCredit_before_CTC:
-        # Dependent credit
-        dep_credit = min(dep_credit, avail)
-        avail = avail - dep_credit
     # Other credits
     c08000 = min(p08000 * (1. - CR_OtherCredits_hc), avail)
     avail = avail - c08000
@@ -1565,13 +1544,13 @@ def NonrefundableCredits(c05800, e07240, e07260, e07300, e07400,
     # Personal nonrefundable credit
     personal_nonrefundable_credit = min(personal_nonrefundable_credit, avail)
     avail = avail - personal_nonrefundable_credit
-    return (c07180, c07200, c07220, c07230, c07240, dep_credit,
+    return (c07180, c07200, c07220, c07230, c07240, odc,
             c07260, c07300, c07400, c07600, c08000, charity_credit,
             personal_nonrefundable_credit)
 
 
 @iterate_jit(nopython=True)
-def AdditionalCTC(codtc_limited, CTC_c, n24, earned, ACTC_Income_thd,
+def AdditionalCTC(codtc_limited, ACTC_c, n24, earned, ACTC_Income_thd,
                   ACTC_rt, nu05, ACTC_rt_bonus_under5family, ACTC_ChildNum,
                   ptax_was, c03260, e09800, c59660, e11200,
                   c11070):
@@ -1581,7 +1560,7 @@ def AdditionalCTC(codtc_limited, CTC_c, n24, earned, ACTC_Income_thd,
     """
     # Part I
     line3 = codtc_limited
-    line4 = CTC_c * n24
+    line4 = ACTC_c * n24
     c11070 = 0.  # line15
     if line3 > 0. and line4 > 0.:
         line5 = min(line3, line4)
@@ -1612,15 +1591,15 @@ def AdditionalCTC(codtc_limited, CTC_c, n24, earned, ACTC_Income_thd,
 @iterate_jit(nopython=True)
 def C1040(c05800, c07180, c07200, c07220, c07230, c07240, c07260, c07300,
           c07400, c07600, c08000, e09700, e09800, e09900, niit, othertaxes,
-          c07100, c09200, dep_credit, charity_credit,
+          c07100, c09200, odc, charity_credit,
           personal_nonrefundable_credit):
     """
     Computes total used nonrefundable credits, c07100, othertaxes, and
     income tax before refundable credits, c09200.
     """
     # total used nonrefundable credits (as computed in NonrefundableCredits)
     c07100 = (c07180 + c07200 + c07600 + c07300 + c07400 + c07220 + c08000 +
-              c07230 + c07240 + c07260 + dep_credit + charity_credit +
+              c07230 + c07240 + c07260 + odc + charity_credit +
               personal_nonrefundable_credit)
     # tax after credits (2016 Form 1040, line 56)
     tax_net_nonrefundable_credits = max(0., c05800 - c07100)

taxcalc/policy.py

@@ -451,15 +451,25 @@ def _validate_parameter_names_types(self, reform):
         in the specified reform dictionary.
         """
         # pylint: disable=too-many-branches,too-many-nested-blocks
-        # pylint: disable=too-many-locals
+        # pylint: disable=too-many-statements,too-many-locals
+        removed_param_names = set([
+            '_DependentCredit_Child_c',
+            '_DependentCredit_Nonchild_c',
+            '_DependentCredit_before_CTC',
+            '_FilerCredit_c',
+            '_ALD_InvInc_ec_base_RyanBrady'
+        ])
         param_names = set(self._vals.keys())
         for year in sorted(reform.keys()):
             for name in reform[year]:
                 if name.endswith('_cpi'):
                     if isinstance(reform[year][name], bool):
                         pname = name[:-4]  # root parameter name
                         if pname not in param_names:
-                            msg = '{} {} unknown parameter name'
+                            if pname in removed_param_names:
+                                msg = '{} {} is a removed parameter name'
+                            else:
+                                msg = '{} {} is an unknown parameter name'
                             self.parameter_errors += (
                                 'ERROR: ' + msg.format(year, name) + '\n'
                             )
@@ -477,7 +487,10 @@ def _validate_parameter_names_types(self, reform):
                         )
                 else:  # if name does not end with '_cpi'
                     if name not in param_names:
-                        msg = '{} {} unknown parameter name'
+                        if name in removed_param_names:
+                            msg = '{} {} is a removed parameter name'
+                        else:
+                            msg = '{} {} is an unknown parameter name'
                         self.parameter_errors += (
                             'ERROR: ' + msg.format(year, name) + '\n'
                         )