Reform to remove head of household filing status

[mzx-4real]

Fixes #3162

Co-authored-by: Pavel Makarchuk [email protected]

🤖 Generated by Copilot at 25cdc49

Summary

✨📄🔨

This pull request adds a new reform option for the Tax Foundation growth and opportunity plan, which removes the head of household filing status and adjusts the standard deduction accordingly. It creates a new parameter file, a new reform package, and a new reform module that define and implement the reform logic. It also updates the changelog file with a new entry.

New tax reform plan
growth_and_opportunity
Autumn of changes

Walkthrough

• Add a new reform for the Tax Foundation growth and opportunity plan (link, link, link, link)

• Create a new parameter file remove_head_of_household.yaml with the option to remove the head of household filing status (link)
• Create a new Python package growth_and_opportunity with an empty __init__.py file (link)
• Create a new reform module remove_standard_deduction_head_of_household.py that overrides the standard deduction variables and updates them based on the parameter value and the American Family Act reform (link)
• Create a reform object and a test instance of the reform in the reform module (link)

[codecov]

Codecov Report

All modified and coverable lines are covered by tests ✅

Comparison is base (2e56e8c) 99.09% compared to head (82c5b25) 99.09%.

Additional details and impacted files

@@           Coverage Diff           @@
##           master    #3163   +/-   ##
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  Coverage   99.09%   99.09%           
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  Files        2039     2039           
  Lines       29626    29626           
  Branches      164      164           
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  Hits        29359    29359           
  Misses        229      229           
  Partials       38       38           

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[MaxGhenis]

is this only for the standard deduction? hoh also has different brackets. you can address both pieces by changing the formula for filing_status instead

@MaxGhenis how would we change the formula?

[MaxGhenis]

please adjust the formula for filing_status instead: https://github.com/PolicyEngine/policyengine-us/blob/master/policyengine_us/variables/household/demographic/tax_unit/filing_status.py

Don't need to touch standard deduction. The TF report discusses removing head of household filing status entirely, which also includes brackets etc.

[MaxGhenis]

Can you also try to find who first proposed hoh repeal? Many have done so, including Senator Romney in his Family Security Act

[mzx-4real]

Can you also try to find who first proposed hoh repeal? Many have done so, including Senator Romney in his Family Security Act

@MaxGhenis Hi max. I think for this particular reform of repealing hoh and changing standard deduction, there isn't an exact senator that proposed this. Rather it is proposed by tax foundation's analysts. The link of the reform analysis is here. The projection is in Table 6 (Expand the standard deduction to $19,500 (double for joint filers) starting in 2024 and eliminate Head of Household filing status).

[MaxGhenis]

I understand Tax Foundation proposed repealing Head of Household filing status in June 2023. They were not the first to do so. For example, Senator Romney did so in February 2021. Could you dig around to see if others proposed it previously? If we can't find others then let's attribute it to Romney.

[MaxGhenis]

Let's attribute this to Senator Romney's Family Security Act, so put in the congress folder

[MaxGhenis]

I'll finish this up as it's come up for a business need