Reform to remove head of household filing status

changelog_entry.yaml

@@ -0,0 +1,5 @@
+- bump: minor
+  changes:
+    added:
+    - Reform for the Tax Foundation growth and opportunity plan.
+

policyengine_us/parameters/gov/contrib/tax_foundation/growth_and_opportunity/remove_head_of_household.yaml

@@ -0,0 +1,9 @@
+description: The head of household filing status will be eliminated if this is true and converted to single.
+values:
+  2000-01-01: False
+metadata:
+  unit: bool
+  label: Tax Foundation growth and opportunity plan remove standard deduction head of household filing status
+  reference:
+    - title: Tax Foundation Details and Analysis of a Tax Reform Plan for Growth and Opportunity
+      href: https://taxfoundation.org/research/all/federal/growth-opportunity-us-tax-reform-plan/#Revenue

policyengine_us/reforms/reforms.py

@@ -4,6 +4,9 @@
 from .dc_tax_threshold_joint_ratio import (
     create_dc_tax_threshold_joint_ratio_reform,
 )
+from .tax_foundation.growth_and_opportunity import (
+    create_remove_standard_deduction_head_of_household_reform,
+)
 from .cbo.payroll import (
     create_increase_taxable_earnings_for_social_security_reform,
 )
@@ -20,6 +23,11 @@ def create_structural_reforms_from_parameters(parameters, period):
     dc_tax_threshold_joint_ratio_reform = (
         create_dc_tax_threshold_joint_ratio_reform(parameters, period)
     )
+    remove_standard_deduction_head_of_household = (
+        create_remove_standard_deduction_head_of_household_reform(
+            parameters, period
+        )
+    )
     increase_taxable_earnings_for_social_security_reform = (
         create_increase_taxable_earnings_for_social_security_reform(
             parameters, period
@@ -31,6 +39,7 @@ def create_structural_reforms_from_parameters(parameters, period):
         winship_reform,
         dc_kccatc_reform,
         dc_tax_threshold_joint_ratio_reform,
+        remove_standard_deduction_head_of_household,
         increase_taxable_earnings_for_social_security_reform,
     ]
     reforms = tuple(filter(lambda x: x is not None, reforms))

policyengine_us/reforms/tax_foundation/growth_and_opportunity/__init__.py

@@ -0,0 +1,3 @@
+from .remove_standard_deduction_head_of_household import (
+    create_remove_standard_deduction_head_of_household_reform,
+)

policyengine_us/reforms/tax_foundation/growth_and_opportunity/remove_standard_deduction_head_of_household.py

@@ -0,0 +1,135 @@
+from policyengine_us.model_api import *
+
+
+def create_remove_standard_deduction_head_of_household() -> Reform:
+    class basic_standard_deduction(Variable):
+        value_type = float
+        entity = TaxUnit
+        label = "Basic Standard Deduction (Eliminating HoH)"
+        unit = USD
+        documentation = "The Basic standard deduction under the tax foundation growth and opportunity plan"
+        definition_period = YEAR
+
+    def formula(tax_unit, period, parameters):
+        std = parameters(period).gov.irs.deductions.standard
+        filing_status = tax_unit("filing_status", period)
+        statuses = filing_status.possible_values
+        separate_filer_itemizes = tax_unit("separate_filer_itemizes", period)
+        claimed_as_dependent_elsewhere = tax_unit(
+            "tax_unit_dependent_elsewhere", period
+        )
+        if (
+            parameters(
+                period
+            ).gov.contrib.tax_foundation.growth_and_opportunity.remove_head_of_household
+            == True
+        ):
+            standard_deduction = select(
+                [
+                    filing_status == statuses.SINGLE,
+                    filing_status == statuses.SEPARATE,
+                    filing_status == statuses.JOINT,
+                    filing_status == statuses.WIDOW,
+                    filing_status == statuses.HEAD_OF_HOUSEHOLD,
+                ],
+                [
+                    std.amount[filing_status],
+                    std.amount[filing_status],
+                    std.amount[filing_status],
+                    std.amount[filing_status],
+                    13850,  # this should be single amount, use fix amount as temp
+                ],
+            )
+        else:
+            standard_deduction = std.amount[filing_status]
+
+        standard_deduction_if_dependent = min_(
+            standard_deduction,
+            max_(
+                std.dependent.additional_earned_income
+                + tax_unit("tax_unit_earned_income", period),
+                std.dependent.amount,
+            ),
+        )
+
+        return select(
+            [
+                separate_filer_itemizes,
+                claimed_as_dependent_elsewhere,
+                True,
+            ],
+            [
+                0,
+                standard_deduction_if_dependent,
+                standard_deduction,
+            ],
+        )
+
+    class additional_standard_deduction(Variable):
+        value_type = float
+        entity = TaxUnit
+        label = "Additional Standard Deduction (Eliminating HoH)"
+        unit = USD
+        documentation = "The additional standard deduction under the tax foundation growth and opportunity plan"
+        definition_period = YEAR
+
+    def formula(tax_unit, period, parameters):
+        std = parameters(period).gov.irs.deductions.standard
+        filing_status = tax_unit("filing_status", period)
+        statuses = filing_status.possible_values
+        aged_blind_count = tax_unit("aged_blind_count", period)
+        if (
+            parameters(
+                period
+            ).gov.contrib.tax_foundation.growth_and_opportunity.remove_head_of_household
+            is True
+        ):
+            additional_standard_deduction_per_count = select(
+                [
+                    filing_status == statuses.SINGLE,
+                    filing_status == statuses.SEPARATE,
+                    filing_status == statuses.JOINT,
+                    filing_status == statuses.WIDOW,
+                    filing_status == statuses.HEAD_OF_HOUSEHOLD,
+                ],
+                [
+                    std.aged_or_blind.amount[filing_status],
+                    std.aged_or_blind.amount[filing_status],
+                    std.aged_or_blind.amount[filing_status],
+                    std.aged_or_blind.amount[filing_status],
+                    1850,  # this should be single amount, use fix amount as temp
+                ],
+            )
+        else:
+            additional_standard_deduction_per_count = std.aged_or_blind.amount[
+                filing_status
+            ]
+        return aged_blind_count * additional_standard_deduction_per_count
+
+    class reform(Reform):
+        def apply(self):
+            self.update_variable(basic_standard_deduction)
+            self.update_variable(additional_standard_deduction)
+
+    return reform
+
+
+def create_remove_standard_deduction_head_of_household_reform(
+    parameters, period, bypass: bool = False
+):
+    if bypass:
+        return create_remove_standard_deduction_head_of_household()
+
+    p = parameters(period).gov.contrib.tax_foundation.growth_and_opportunity
+
+    if p.remove_head_of_household is True:
+        return create_remove_standard_deduction_head_of_household()
+    else:
+        return None
+
+
+remove_standard_deduction_head_of_household = (
+    create_remove_standard_deduction_head_of_household_reform(
+        None, None, bypass=True
+    )
+)

policyengine_us/tests/policy/contrib/tax_foundation/growth_and_opportunity/remove_standard_deduction_head_of_household.yaml

@@ -0,0 +1,15 @@
+- name: Remove standard deduction head of household filing status
+  period: 2023
+  reforms: policyengine_us.reforms.tax_foundation.growth_and_opportunity.remove_standard_deduction_head_of_household.remove_standard_deduction_head_of_household
+  input:
+    gov.contrib.tax_foundation.growth_and_opportunity.remove_head_of_household : True
+    # tax unit basic standard deduction
+    filing_status: HEAD_OF_HOUSEHOLD
+    separate_filer_itemizes: False
+    tax_unit_dependent_elsewhere: False
+    tax_unit_earned_income: 0
+    # tax unit additional standard deduction
+    aged_blind_count: 2
+  output:
+    basic_standard_deduction: 13_850 # Calculate after hoh formula is done
+    additional_standard_deduction: 3_700 # Calculate after hoh formula is done