Merge pull request #67 from mitchellpound/circularity

Merging

CHANGELOG.md

@@ -5,6 +5,13 @@ All notable changes to this project will be documented in this file.
 The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
 and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.html).
 
+## [0.2.4] - 2023-10-24 10:00:00
+
+### Added
+
+- Fixed circularity in CO tax logic
+- Fixed circularity in MO tax logic
+
 ## [0.2.3] - 2023-10-13 16:00:00
 
 ### Added
@@ -171,6 +178,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 - First prototype version based off of openfisca-us and tax-calculator.
 
 
+[0.2.4]: https://github.com/TheCGO/fiscalsim-us/compare/v0.2.3...v0.2.4
 [0.2.3]: https://github.com/TheCGO/fiscalsim-us/compare/v0.2.2...v0.2.3
 [0.2.2]: https://github.com/TheCGO/fiscalsim-us/compare/v0.2.1...v0.2.2
 [0.2.1]: https://github.com/TheCGO/fiscalsim-us/compare/v0.2.0...v0.2.1

changelog.yaml

@@ -157,3 +157,9 @@
       - adjusted `salt_deduction.py` to calculate based on the added variables
       - Adds three files `prior_year_state_income_tax_paid.py`, `prior_year_local_income_tax_paid.py`, and `sales_or_prior_year_state_and_local_income_tax.py`
   date: 2023-10-13 16:00:00
+- bump: patch
+  changes:
+    added:
+      - Fixed circularity in CO tax logic
+      - Fixed circularity in MO tax logic
+  date: 2023-10-24 10:00:00

fiscalsim_us/tests/policy/baseline/gov/states/mo/tax/income/taxable_income/mo_net_state_income_taxes.yaml

@@ -3,7 +3,7 @@
   absolute_error_margin: 0
   input:
     filing_status: SINGLE
-    state_income_tax: 0
+    prior_year_state_income_tax_paid: 0
     state_code: MO
   output:
     mo_net_state_income_taxes: 0.0
@@ -13,7 +13,7 @@
   absolute_error_margin: 0.01
   input:
     filing_status: SINGLE
-    state_income_tax: 23_000
+    prior_year_state_income_tax_paid: 23_000
     state_code: MO
   output:
     mo_net_state_income_taxes: 10_000
@@ -24,7 +24,7 @@
   input:
     filing_status: SINGLE
     real_estate_taxes: 4_000
-    state_income_tax: 3_000
+    prior_year_state_income_tax_paid: 3_000
     state_code: MO
   output:
     mo_net_state_income_taxes: 3_000
@@ -35,7 +35,7 @@
   input:
     filing_status: JOINT
     real_estate_taxes: 4_000
-    state_income_tax:  8_000
+    prior_year_state_income_tax_paid: 8_000
     state_code: MO
   output:
     mo_net_state_income_taxes: 6_666.67  # = 10_000 * 2/3

fiscalsim_us/variables/gov/states/co/tax/income/additions/co_state_addback.py

@@ -8,25 +8,27 @@ class co_state_addback(Variable):
     unit = USD
     definition_period = YEAR
     reference = (
-        "https://tax.colorado.gov/sites/tax/files/documents/DR_104_Book_2021.pdf#page=5"
-        "https://tax.colorado.gov/sites/tax/files/documents/DR_104_Book_2022.pdf#page=5"
+        "https://tax.colorado.gov/sites/tax/files/documents/DR_104_Book_2021.pdf#page=5",
+        "https://tax.colorado.gov/sites/tax/files/documents/DR_104_Book_2022.pdf#page=5",
+        "https://tax.colorado.gov/sites/tax/files/documents/ITT_State_Income_Tax_Addback_Jan_2023.pdf",
     )
     defined_for = StateCode.CO
 
     def formula(tax_unit, period, parameters):
         federal_itemizer = tax_unit("tax_unit_itemizes", period)
-        state_inctax = max_(0, tax_unit("state_income_tax", period))
-        property_taxes = add(tax_unit, period, ["real_estate_taxes"])
-        # follow worksheet on page 5 of 2021 Book cited above:
-        irs_schA_line_5d = state_inctax + property_taxes
-        irs_schA_line_5e = tax_unit("salt_deduction", period)
-        ws_line_a = where(
-            irs_schA_line_5d > irs_schA_line_5e,
-            max_(0, irs_schA_line_5e - property_taxes),
-            state_inctax,
+
+        salt_deduct = tax_unit("salt_deduction", period)
+        local_taxes = add(
+            tax_unit, period, ["prior_year_local_income_tax_paid"]
         )
+        property_taxes = add(tax_unit, period, ["real_estate_taxes"])
+        state_addback = max_(0, salt_deduct - local_taxes - property_taxes)
+
+        # return the max between the "extra" itemized deductions above the std
+        # and the state taxes included in the SALT deduction
         p = parameters(period).gov.irs.deductions
-        ws_line_b = add(tax_unit, period, p.itemized_deductions)
-        ws_line_c = tax_unit("standard_deduction", period)
-        ws_line_d = max_(0, ws_line_b - ws_line_c)
-        return federal_itemizer * min_(ws_line_a, ws_line_d)
+        item_deducts = add(tax_unit, period, p.itemized_deductions)
+        std_deducts = tax_unit("standard_deduction", period)
+        alt_addback = max_(0, item_deducts - std_deducts)
+
+        return federal_itemizer * min_(state_addback, alt_addback)

fiscalsim_us/variables/gov/states/mo/tax/income/taxable_income/mo_net_state_income_taxes.py

@@ -20,7 +20,9 @@ def formula(tax_unit, period, parameters):
         p = parameters(period).gov.irs.deductions.itemized
         salt_cap = p.salt_and_real_estate.cap[filing_status]
 
-        uncapped_itax = max_(0, add(tax_unit, period, ["state_income_tax"]))
+        uncapped_itax = max_(
+            0, add(tax_unit, period, ["prior_year_state_income_tax_paid"])
+        )
         uncapped_ptax = add(tax_unit, period, ["real_estate_taxes"])
         uncapped_salt = uncapped_itax + uncapped_ptax
 

fiscalsim_us/variables/gov/states/tax/income/state_income_tax.py

@@ -10,7 +10,7 @@ class state_income_tax(Variable):
     adds = [
         # state income tax variables listed in alphabetical order:
         "ca_income_tax",
-        # "co_income_tax",  --- activating will cause circular logic errors
+        "co_income_tax",
         "dc_income_tax",
         "ia_income_tax",
         "il_income_tax",
@@ -23,7 +23,7 @@ class state_income_tax(Variable):
         "me_income_tax",
         "mn_income_tax",
         "mt_income_tax",
-        # "mo_income_tax",  --- activating will cause circular logic errors
+        "mo_income_tax",
         "nc_income_tax",
         "nd_income_tax",
         "ne_income_tax",

setup.py

@@ -7,7 +7,7 @@
 
 setup(
     name="fiscalsim-us",
-    version="0.2.3",
+    version="0.2.4",
     author="Center for Growth and Opportunity at Utah State University (CGO)",
     author_email="fiscalsim@thecgo.org",
     long_description=readme,