Merge pull request PSLmodels#2817 from martinholmer/update-tcja-ext-r…

…eform Update reforms/ext.json using extend_tcja.py script
martinholmer · Sep 28, 2024 · 294b6aa · 294b6aa
2 parents 1fdf79b + 38685ca
commit 294b6aa
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diff --git a/extend_tcja.py b/extend_tcja.py
@@ -5,6 +5,12 @@
 
 USAGE: (taxcalc-dev) ~% python extend_tcja.py
 
+WHEN TO USE: use this script to update reforms/ext.json in these situations:
+(a) whenever inflation rates in the growfactors.csv files are changed
+OR
+(b) whenever inflation-indexed parameters are updated (usually as part
+    of changes that increase the value of Policy.LAST_KNOWN_YEAR).
+
 IMPORTANT NOTE: be sure to remove the trailing comma after the last item
                 in the reform JSON object generated by this script.
 """
@@ -76,7 +82,6 @@
     "PT_qbid_alt_property_rt": {"indexed": False, "category": 7},
     # category 8 ...
     "ALD_BusinessLosses_c": {"indexed": True, "category": 8},
-    "ALD_DomesticProduction_hc": {"indexed": False, "category": 8},
 }
 
 

diff --git a/taxcalc/reforms/ext.json b/taxcalc/reforms/ext.json
@@ -1,31 +1,31 @@
 // REFORM TO EXTEND TEMPORARY TCJA PROVISIONS BEYOND 2025
-// USING TAX-CALCULATOR 3.5.3
+// USING TAX-CALCULATOR 4.2.2b
 // WITH 2025-to-2026 INDEXING FACTOR = 1.022000
 {
     "II_rt1": {"2026": 0.10},
-    "II_brk1": {"2026": [12170.98, 24341.94, 12170.98, 17353.27, 24341.94]},
+    "II_brk1": {"2026": [12157.51, 24315.02, 12157.51, 17345.41, 24315.02]},
     "PT_rt1": {"2026": 0.10},
-    "PT_brk1": {"2026": [12170.98, 24341.94, 12170.98, 17353.27, 24341.94]},
+    "PT_brk1": {"2026": [12157.51, 24315.02, 12157.51, 17345.41, 24315.02]},
     "II_rt2": {"2026": 0.12},
-    "II_brk2": {"2026": [49483.44, 98966.89, 49483.44, 66214.83, 98966.89]},
+    "II_brk2": {"2026": [49416.07, 98832.15, 49416.07, 66132.65, 98832.15]},
     "PT_rt2": {"2026": 0.12},
-    "PT_brk2": {"2026": [49483.44, 98966.89, 49483.44, 66214.83, 98966.89]},
+    "PT_brk2": {"2026": [49416.07, 98832.15, 49416.07, 66132.65, 98832.15]},
     "II_rt3": {"2026": 0.22},
-    "II_brk3": {"2026": [105511.38, 211022.75, 105511.38, 105481.77, 211022.75]},
+    "II_brk3": {"2026": [105356.33, 210712.67, 105356.33, 105330.13, 210712.67]},
     "PT_rt3": {"2026": 0.22},
-    "PT_brk3": {"2026": [105511.38, 211022.75, 105511.38, 105481.77, 211022.75]},
+    "PT_brk3": {"2026": [105356.33, 210712.67, 105356.33, 105330.13, 210712.67]},
     "II_rt4": {"2026": 0.24},
-    "II_brk4": {"2026": [201428.14, 402856.25, 201428.14, 201428.14, 402856.25]},
+    "II_brk4": {"2026": [201175.3, 402350.62, 201175.3, 201175.3, 402350.62]},
     "PT_rt4": {"2026": 0.24},
-    "PT_brk4": {"2026": [201428.14, 402856.25, 201428.14, 201428.14, 402856.25]},
+    "PT_brk4": {"2026": [201175.3, 402350.62, 201175.3, 201175.3, 402350.62]},
     "II_rt5": {"2026": 0.32},
-    "II_brk5": {"2026": [255797.72, 511595.46, 255797.72, 255797.72, 511595.46]},
+    "II_brk5": {"2026": [255438.67, 510877.34, 255438.67, 255412.47, 510877.34]},
     "PT_rt5": {"2026": 0.32},
-    "PT_brk5": {"2026": [255797.72, 511595.46, 255797.72, 255797.72, 511595.46]},
+    "PT_brk5": {"2026": [255438.67, 510877.34, 255438.67, 255412.47, 510877.34]},
     "II_rt6": {"2026": 0.35},
-    "II_brk6": {"2026": [639523.94, 767393.2, 383696.6, 639523.94, 767393.2]},
+    "II_brk6": {"2026": [638635.98, 766342.2, 383171.1, 638635.98, 766342.2]},
     "PT_rt6": {"2026": 0.35},
-    "PT_brk6": {"2026": [639523.94, 767393.2, 383696.6, 639523.94, 767393.2]},
+    "PT_brk6": {"2026": [638635.98, 766342.2, 383171.1, 638635.98, 766342.2]},
     "II_rt7": {"2026": 0.37},
     "II_brk7": {"2026": [9e+99, 9e+99, 9e+99, 9e+99, 9e+99]},
     "PT_rt7": {"2026": 0.37},
@@ -35,10 +35,10 @@
     "ODC_c": {"2026": 500.00},
     "CTC_ps": {"2026": [200000.0, 400000.0, 200000.0, 200000.0, 400000.0]},
     "ACTC_Income_thd": {"2026": 2500.00},
-    "AMT_em": {"2026": [89905.29, 139892.17, 69946.08, 89905.29, 139892.17]},
-    "AMT_em_ps": {"2026": [639523.94, 1279047.88, 639523.94, 639523.94, 1279047.88]},
-    "AMT_em_pe": {"2026": 939533.04},
-    "STD": {"2026": [15339.57, 30679.14, 15339.57, 22979.74, 30679.14]},
+    "AMT_em": {"2026": [89818.83, 139706.53, 69853.27, 89818.83, 139706.53]},
+    "AMT_em_ps": {"2026": [638635.98, 1277271.94, 638635.98, 638635.98, 1277271.94]},
+    "AMT_em_pe": {"2026": 938246.12},
+    "STD": {"2026": [15301.69, 30603.38, 15301.69, 22952.54, 30603.38]},
     "ID_AllTaxes_c": {"2026": [10000.0, 10000.0, 5000.0, 10000.0, 10000.0]},
     "ID_Charity_crt_cash": {"2026": 0.60},
     "ID_Casualty_hc": {"2026": 1.00},
@@ -49,10 +49,10 @@
     "II_em": {"2026": 0.00},
     "II_em_ps": {"2026": [9e+99, 9e+99, 9e+99, 9e+99, 9e+99]},
     "PT_qbid_rt": {"2026": 0.20},
-    "PT_qbid_taxinc_thd": {"2026": [201428.14, 402856.25, 201428.14, 201428.14, 402856.25]},
+    "PT_qbid_taxinc_thd": {"2026": [201175.3, 402350.62, 201175.3, 201175.3, 201175.3]},
     "PT_qbid_taxinc_gap": {"2026": [50000.0, 100000.0, 50000.0, 50000.0, 100000.0]},
     "PT_qbid_w2_wages_rt": {"2026": 0.50},
     "PT_qbid_alt_w2_wages_rt": {"2026": 0.25},
     "PT_qbid_alt_property_rt": {"2026": 0.03},
-    "ALD_BusinessLosses_c": {"2026": [319821.19, 639642.39, 319821.19, 319821.19, 639642.39]}
+    "ALD_BusinessLosses_c": {"2026": [319658.6, 639317.21, 319658.6, 319658.6, 639317.21]}
 }
diff --git a/taxcalc/tests/test_reforms.py b/taxcalc/tests/test_reforms.py
@@ -383,4 +383,4 @@ def test_ext_reform(tests_path):
     iitax_ext = calc_ext.array('iitax')
     rdiff = iitax_ext - iitax_end
     weighted_sum_rdiff = (rdiff * calc_end.array('s006')).sum() * 1.0e-9
-    assert np.allclose([weighted_sum_rdiff], [-232.43], rtol=0.0, atol=0.01)
+    assert np.allclose([weighted_sum_rdiff], [-230.805], rtol=0.0, atol=0.01)