def __init__(self, btax_params, earnings,
data=None, assets=None, debts=None):
# Create an associated Data object
if isinstance(data, Data):
self.data = data
else:
self.data = Data()
if isinstance(btax_params, pd.DataFrame):
self.btax_params = btax_params
else:
raise ValueError('btax_params must be DataFrame')
if assets is not None:
if isinstance(assets, Asset):
self.assets = assets
else:
raise ValueError('assets must be Asset object')
else:
self.assets = Asset(btax_params)
self.assets.calc_all()
if debts is not None:
if isinstance(debts, Debt):
self.debts = debts
else:
raise ValueError('debts must be Debt object')
else:
assets_forecast = self.assets.get_forecast()
self.debts = Debt(btax_params, assets_forecast)
self.debts.calc_all()
# Use earnings to create DataFrame for results
assert len(earnings) == 14
combined = pd.DataFrame({'year': range(2014,2028), 'ebitda': earnings})
# Add tax depreciation and net interest deductions
combined['taxDep'] = self.assets.get_taxdep()
combined['nid'] = self.debts.get_nid()
self.combined_return = combined
def calcIDAdjustment(corp, eta=0.4):
"""
Calculates the adjustment factors for the corporate and noncorporate
debt and interest.
eta: retirement rate of existing debt
"""
policy = Policy()
policy_params_df = policy.parameters_dataframe()
# Create Asset object
asset = Asset(policy_params_df, corp)
asset.calc_all()
# Get asset forecast
forecast = asset.get_forecast()
# Create Debt object
debt = Debt(policy_params_df, forecast, corp=corp)
debt.calc_all()
# Get unscaled net interest deduction
NID_gross = debt.NID[38:54]
# Get net interest deduction from historical IRS data
if corp:
NID_irs = np.array(data1.debt_data_corp['NID_IRS'])[38:54]
else:
NID_irs = np.array(data1.debt_data_noncorp['ID_Scorp'][38:54] +
data1.debt_data_noncorp['ID_sp'][38:54] +
data1.debt_data_noncorp['ID_partner'][38:54])
NID_scale = sum(NID_irs / NID_gross) / 16.0 # 16 = 54 - 38
return NID_scale
def create_debt(self):
"""
Creates the Debt object for the pass-through sector.
Note: create_asset must have already been called
"""
self.debt = Debt(self.btax_params, self.asset.get_forecast(),
data=self.data, corp=False)
self.debt.calc_all()
def update_debt(self, responses):
"""
Replaces the Debt object to use the new asset forecast and Data
"""
pctch_delta = np.array(responses.debt_response['pchDelta_corp'])
self.debt = Debt(self.btax_params, self.asset.get_forecast(),
data=self.data, response=pctch_delta, corp=False)
self.debt.calc_all()
def create_debt(self):
"""
Creates the Debt object for the Corporation.
Note: create_asset must have already been called
"""
self.debt = Debt(self.btax_params,
self.asset.get_forecast(),
data=self.data,
corp=True)
self.debt.calc_all()
def create_debt(self):
"""
Creates the Debt object for the pass-through sector.
Note: create_asset must have already been called
"""
self.debt = Debt(self.btax_params,
self.asset.get_forecast(),
data=self.data,
corp=False)
self.debt.calc_all()
self.intded = (self.debt.get_nid() *
(1. - self.btax_params['intPaid_noncorp_hc']))
def calcIDAdjustment(corp, eta=0.4):
"""
Calculates the adjustment factors for the corporate and noncorporate
debt and interest.
eta: retirement rate of existing debt
"""
data = Data()
policy = Policy()
policy_params_df = policy.parameters_dataframe()
# Create Asset object
asset = Asset(policy_params_df, corp)
asset.calc_all()
# Get asset forecast
forecast = asset.get_forecast()
# Create Debt object
debt = Debt(policy_params_df, forecast, corp=corp)
debt.calc_all()
# Get unscaled interest incomes and expenses
intpaid_model = debt.int_expense[40:54]
intinc_model = debt.int_income[40:54]
muniinc_model = debt.muni_income[40:54]
if corp:
# Exclude anomalous results for 2007
paid_scale = (sum(intpaid[:7] / intpaid_model[:7]) +
sum(intpaid[8:] / intpaid_model[8:])) / 13.
inc_scale = (sum(taxint[:7] / intinc_model[:7]) +
sum(taxint[8:] / intinc_model[8:])) / 13.
muni_scale = (sum(ntaxint[:7] / muniinc_model[:7]) +
sum(ntaxint[8:] / muniinc_model[8:]))/ 13.
scales = [paid_scale, inc_scale, muni_scale]
else:
ID_irs = np.array(data.debt_data_noncorp['ID_Scorp'][40:54] +
data.debt_data_noncorp['ID_sp'][40:54] +
data.debt_data_noncorp['ID_partner'][40:54])
scales = sum(ID_irs / intpaid_model) / 14.
assets14 = forecast[0]
return (scales, assets14, intpaid_model, intinc_model, muniinc_model)
class CorpTaxReturn():
"""
Constructor for the CorpTaxReturn object.
This class includes objects relevant to the calculation of
corporate income tax liability:
assets: an associated Asset object
debts: an associated debt object
combined_return: a DataFrame with tax calculations for each year
Parameters:
btax_params: dict of business tax policy parameters
assets: Asset object for the corporation
debts: Debt object for the corporation
earnings: list or array of earnings for each year in the budget window
"""
def __init__(self, btax_params, earnings,
data=None, assets=None, debts=None):
# Create an associated Data object
if isinstance(data, Data):
self.data = data
else:
self.data = Data()
if isinstance(btax_params, pd.DataFrame):
self.btax_params = btax_params
else:
raise ValueError('btax_params must be DataFrame')
if assets is not None:
if isinstance(assets, Asset):
self.assets = assets
else:
raise ValueError('assets must be Asset object')
else:
self.assets = Asset(btax_params)
self.assets.calc_all()
if debts is not None:
if isinstance(debts, Debt):
self.debts = debts
else:
raise ValueError('debts must be Debt object')
else:
assets_forecast = self.assets.get_forecast()
self.debts = Debt(btax_params, assets_forecast)
self.debts.calc_all()
# Use earnings to create DataFrame for results
assert len(earnings) == 14
combined = pd.DataFrame({'year': range(2014,2028), 'ebitda': earnings})
# Add tax depreciation and net interest deductions
combined['taxDep'] = self.assets.get_taxdep()
combined['nid'] = self.debts.get_nid()
self.combined_return = combined
def update_assets(self, assets):
"""
Updates the Asset object associated with the tax return.
"""
if isinstance(assets, Asset):
self.assets = assets
else:
raise ValueError('assets must be Asset object')
def update_debts(self, debts):
"""
Updates the Debt object associated with the tax return.
"""
if isinstance(debts, Debt):
self.debts = debts
else:
raise ValueError('debts must be Debt object')
def update_earnings(self, earnings):
"""
Updates the earnings DataFrame associated with the tax return.
"""
assert len(earnings) == 14
self.combined_return['ebitda'] = earnings
def calcSec199(self):
"""
Calculates section 199 deduction.
"""
# Extract relevant parmeters
s199_hclist = np.array(self.btax_params['sec199_hc'])
profit = np.asarray(self.data.gfactors['profit_d'])
sec199_res = np.zeros(14)
sec199_2013 = np.asarray(self.data.historical_taxdata['sec199'])[-1]
for i in range(14):
sec199_res[i] = profit[i+1] / profit[0] * sec199_2013 * (1 - s199_hclist[i])
self.combined_return['sec199'] = sec199_res
def calcInitialTax(self):
"""
Calculates taxable income and tax before credits.
"""
self.combined_return['taxinc'] = (self.combined_return['ebitda'] -
self.combined_return['taxDep'] -
self.combined_return['nid'] -
self.combined_return['sec199'])
self.combined_return['tau'] = self.btax_params['tau_c']
self.combined_return['taxbc'] = (self.combined_return['taxinc'] *
self.combined_return['tau'])
def calcFTC(self):
"""
Calculates foreign tax credit for 2014-2027.
"""
hclist = np.array(self.btax_params['ftc_hc'])
def calcWAvgTaxRate(year):
"""
Calculates the weighted average statutory corporate tax rate
in all OECD countries in a given year.
"""
assert year in range(1995, 2028)
year = min(year, 2016)
gdp_list = np.asarray(self.data.ftc_gdp_data[str(year)])
taxrate_list = np.asarray(self.data.ftc_taxrates_data[str(year)])
# remove observations with missing data
taxrate_list2 = np.where(np.isnan(taxrate_list), 0, taxrate_list)
gdp_list2 = np.where(np.isnan(taxrate_list), 0, gdp_list)
avgrate = sum(taxrate_list2 * gdp_list2) / sum(gdp_list2)
return avgrate
# Get foreign profits forecast
profits = np.asarray(self.data.ftc_other_data['C_total'][19:])
profits_d = np.asarray(self.data.ftc_other_data['C_domestic'][19:])
tax_f = np.zeros(14)
for i in range(14):
tax_f[i] = calcWAvgTaxRate(i + 2014)
ftc_final = ((profits - profits_d) * tax_f / 100. *
self.data.adjfactor_ftc_corp *
(1 - hclist)) * self.data.rescale_corp
self.combined_return['ftc'] = ftc_final
def calcAMT(self):
"""
Calculates the AMT revenue and PYMTC for 2014-2027
pymtc_status: 0 for no change, 1 for repeal, 2 for refundable
"""
# Get relevant tax information
taxinc = np.array(self.combined_return['taxinc'])
amt_rates = np.array(self.btax_params['tau_amt'])
ctax_rates = np.array(self.btax_params['tau_c'])
pymtc_status = np.array(self.btax_params['pymtc_status'])
# Check values for PYMTC status
for x in pymtc_status:
assert x in [0, 1, 2]
# Create empty arrays for AMT, PYMTC, and stocks (by status)
A = np.zeros(14)
P = np.zeros(14)
stockA = np.zeros(15)
stockN = np.zeros(15)
stockA[0] = ((self.data.trans_amt1 * self.data.userate_pymtc + self.data.trans_amt2 *
(1 - self.data.userate_pymtc)) / (1 - self.data.trans_amt1) * self.data.stock2014)
stockN[0] = self.data.stock2014 - stockN[0]
stockN[0] = (1 - self.data.trans_amt1) / (1 - self.data.trans_amt1 + self.data.trans_amt1 *
self.data.userate_pymtc + self.data.trans_amt2 *
(1 - self.data.userate_pymtc)) * self.data.stock2014
stockA[0] = self.data.stock2014 - stockN[0]
for i in range(14):
# Calculate AMT
if amt_rates[i] == 0.:
# If no AMT
A[i] = 0.
frac_amt = 0.
elif ctax_rates[i] <= amt_rates[i]:
# If AMT rate exceeds regular rate (all subject to AMT)
A[i] = ((amt_rates[i] - ctax_rates[i] + amt_rates[i] / self.data.param_amt) *
taxinc[i])
frac_amt = 0.999
else:
A[i] = (amt_rates[i] / self.data.param_amt *
np.exp(-self.data.param_amt * (ctax_rates[i] / amt_rates[i] - 1)) *
taxinc[i])
frac_amt = np.exp(-self.data.param_amt * (ctax_rates[i] / amt_rates[i] - 1))
# Adjust transition params for change in AMT frequency
alpha = max(0.0, min(1.0, self.data.trans_amt1 * (frac_amt / self.data.amt_frac)**0.5))
beta = (1 - alpha) * frac_amt / (1 - frac_amt)
if pymtc_status[i] == 0:
# No change from baseline
userate = self.data.userate_pymtc
elif pymtc_status[i] == 1:
# PYMTC repealed
userate = 0.0
else:
# PYMTC made fully refundable
userate = 1.0
P[i] = userate * stockN[i]
stockA[i+1] = (alpha * (stockA[i] + A[i]) +
beta * (stockN[i] - P[i]))
stockN[i+1] = ((1 - alpha) * (stockA[i] + A[i]) +
(1 - beta) * (stockN[i] - P[i]))
# Rescale for any cross-sector shifting
amt_final = A * self.data.rescale_corp
pymtc_final = P * self.data.rescale_corp
self.combined_return['amt'] = amt_final
self.combined_return['pymtc'] = pymtc_final
def calcTax(self):
"""
Calculates final tax liability.
"""
# Calculate general business credits
profit = np.asarray(self.data.gfactors['profit_d'])
gbc_2013 = np.asarray(self.data.historical_taxdata['gbc'])[-1]
gbc_res = profit[1:] / profit[0] * gbc_2013
self.combined_return['gbc'] = gbc_res
# Calculate final tax liability
self.combined_return['taxrev'] = (self.combined_return['taxbc'] +
self.combined_return['amt'] -
self.combined_return['ftc'] -
self.combined_return['pymtc'] -
self.combined_return['gbc'])
def calc_all(self):
"""
Executes all tax calculations.
"""
self.calcSec199()
self.calcInitialTax()
self.calcFTC()
self.calcAMT()
self.calcTax()
def getReturn(self):
"""
Returns the tax return information
"""
combined_result = copy.deepcopy(self.combined_return)
return combined_result
def get_tax(self):
"""
Returns the total tax liability.
"""
tax1 = np.array(self.combined_return['taxrev'])
return tax1
def __init__(self,
btax_params,
revenues,
deductions,
credit,
dmne=None,
data=None,
assets=None,
debts=None):
# Create an associated Data object
if isinstance(data, Data):
self.data = data
else:
self.data = Data()
if isinstance(btax_params, pd.DataFrame):
self.btax_params = btax_params
else:
raise ValueError('btax_params must be DataFrame')
if isinstance(revenues, pd.DataFrame):
self.revenues = copy.deepcopy(revenues)
else:
raise ValueError('revenues must be in DataFrame')
if isinstance(deductions, pd.DataFrame):
self.deductions = copy.deepcopy(deductions)
else:
raise ValueError('deductions must be in DataFrame')
if isinstance(credit, pd.DataFrame):
self.credits = copy.deepcopy(credit)
else:
raise ValueError('credits must be in DataFrame')
if dmne is None:
# Note: Don't do this in general
self.dmne = DomesticMNE(self.btax_params)
self.dmne.calc_all()
elif isinstance(dmne, DomesticMNE):
self.dmne = dmne
else:
raise ValueError('dmne must be a DomesticMNE object')
if assets is not None:
if isinstance(assets, Asset):
self.assets = assets
else:
raise ValueError('assets must be Asset object')
else:
self.assets = Asset(btax_params)
self.assets.calc_all()
if debts is not None:
if isinstance(debts, Debt):
self.debts = debts
else:
raise ValueError('debts must be Debt object')
else:
assets_forecast = self.assets.get_forecast()
self.debts = Debt(btax_params, assets_forecast)
self.debts.calc_all()
# Prepare unmodeled components of tax return
self.revenues['capgains'] = (
self.revenues['capgains'] *
(1. - self.btax_params['capgains_corp_hc']))
self.revenues['domestic_divs'] = (
self.revenues['domestic_divs'] *
self.btax_params['domestic_dividend_inclusion'])
self.revenues['total'] = (self.revenues['receipts'] +
self.revenues['rent'] +
self.revenues['royalties'] +
self.revenues['capgains'] +
self.revenues['domestic_divs'] +
self.revenues['other'] +
self.dmne.dmne_results['foreign_taxinc'])
self.deductions['charity'] = (self.deductions['charity'] *
(1. - self.btax_params['charity_hc']))
self.deductions['statelocaltax'] = (
self.deductions['statelocaltax'] *
(1. - self.btax_params['statelocaltax_hc']))
self.deductions['total'] = (
self.deductions['cogs'] + self.deductions['execcomp'] +
self.deductions['wages'] + self.deductions['repairs'] +
self.deductions['baddebt'] + self.deductions['rent'] +
self.deductions['statelocaltax'] + self.deductions['charity'] +
self.deductions['amortization'] + self.deductions['depletion'] +
self.deductions['advertising'] + self.deductions['pensions'] +
self.deductions['benefits'] + self.deductions['other'])
combined = pd.DataFrame({
'year':
range(START_YEAR, END_YEAR + 1),
'ebitda': (self.revenues['total'] - self.deductions['total'])
})
# Add tax depreciation
combined['taxDep'] = self.assets.get_taxdep()
self.combined_return = combined
class CorpTaxReturn():
"""
Constructor for the CorpTaxReturn object.
This class includes objects relevant to the calculation of
corporate income tax liability:
assets: an associated Asset object
debts: an associated debt object
combined_return: a DataFrame with tax calculations for each year
Parameters:
btax_params: dict of business tax policy parameters
assets: Asset object for the corporation
debts: Debt object for the corporation
earnings: list or array of earnings for each year in the budget window
"""
def __init__(self,
btax_params,
revenues,
deductions,
credit,
dmne=None,
data=None,
assets=None,
debts=None):
# Create an associated Data object
if isinstance(data, Data):
self.data = data
else:
self.data = Data()
if isinstance(btax_params, pd.DataFrame):
self.btax_params = btax_params
else:
raise ValueError('btax_params must be DataFrame')
if isinstance(revenues, pd.DataFrame):
self.revenues = copy.deepcopy(revenues)
else:
raise ValueError('revenues must be in DataFrame')
if isinstance(deductions, pd.DataFrame):
self.deductions = copy.deepcopy(deductions)
else:
raise ValueError('deductions must be in DataFrame')
if isinstance(credit, pd.DataFrame):
self.credits = copy.deepcopy(credit)
else:
raise ValueError('credits must be in DataFrame')
if dmne is None:
# Note: Don't do this in general
self.dmne = DomesticMNE(self.btax_params)
self.dmne.calc_all()
elif isinstance(dmne, DomesticMNE):
self.dmne = dmne
else:
raise ValueError('dmne must be a DomesticMNE object')
if assets is not None:
if isinstance(assets, Asset):
self.assets = assets
else:
raise ValueError('assets must be Asset object')
else:
self.assets = Asset(btax_params)
self.assets.calc_all()
if debts is not None:
if isinstance(debts, Debt):
self.debts = debts
else:
raise ValueError('debts must be Debt object')
else:
assets_forecast = self.assets.get_forecast()
self.debts = Debt(btax_params, assets_forecast)
self.debts.calc_all()
# Prepare unmodeled components of tax return
self.revenues['capgains'] = (
self.revenues['capgains'] *
(1. - self.btax_params['capgains_corp_hc']))
self.revenues['domestic_divs'] = (
self.revenues['domestic_divs'] *
self.btax_params['domestic_dividend_inclusion'])
self.revenues['total'] = (self.revenues['receipts'] +
self.revenues['rent'] +
self.revenues['royalties'] +
self.revenues['capgains'] +
self.revenues['domestic_divs'] +
self.revenues['other'] +
self.dmne.dmne_results['foreign_taxinc'])
self.deductions['charity'] = (self.deductions['charity'] *
(1. - self.btax_params['charity_hc']))
self.deductions['statelocaltax'] = (
self.deductions['statelocaltax'] *
(1. - self.btax_params['statelocaltax_hc']))
self.deductions['total'] = (
self.deductions['cogs'] + self.deductions['execcomp'] +
self.deductions['wages'] + self.deductions['repairs'] +
self.deductions['baddebt'] + self.deductions['rent'] +
self.deductions['statelocaltax'] + self.deductions['charity'] +
self.deductions['amortization'] + self.deductions['depletion'] +
self.deductions['advertising'] + self.deductions['pensions'] +
self.deductions['benefits'] + self.deductions['other'])
combined = pd.DataFrame({
'year':
range(START_YEAR, END_YEAR + 1),
'ebitda': (self.revenues['total'] - self.deductions['total'])
})
# Add tax depreciation
combined['taxDep'] = self.assets.get_taxdep()
self.combined_return = combined
def update_assets(self, assets):
"""
Updates the Asset object associated with the tax return.
"""
if isinstance(assets, Asset):
self.assets = assets
else:
raise ValueError('assets must be Asset object')
def update_debts(self, debts):
"""
Updates the Debt object associated with the tax return.
"""
if isinstance(debts, Debt):
self.debts = debts
else:
raise ValueError('debts must be Debt object')
def update_earnings(self, dearnings):
"""
Updates the earnings DataFrame associated with the tax return.
"""
assert len(dearnings) == NUM_YEARS
fearnings = np.asarray(self.dmne.dmne_results['foreign_taxinc'])
self.combined_return['ebitda'] = dearnings + fearnings
def calcInterestDeduction(self):
"""
Computes interest deduction.
"""
# Compute adjusted taxable income
adjTaxInc = np.maximum(
self.combined_return['ebitda'] - self.revenues['capgains'] -
self.combined_return['taxDep'] +
self.btax_params['adjustedTaxInc_def'] *
(self.combined_return['taxDep'] + self.deductions['amortization'] +
self.deductions['depletion']), 0.0001)
# Section 163(j) deduction limitation
deductible_int = (
adjTaxInc * self.btax_params['adjustedTaxInc_limit'] +
self.debts.get_intInc())
intded0 = self.debts.get_intDed()
intded1 = np.zeros(NUM_YEARS)
for i in range(NUM_YEARS):
if i > 0:
# Add disallowed interest as carryforward from prior year
intded0[i] = intded0[i] + intded0[i - 1] - intded1[i - 1]
intded1[i] = min(deductible_int[i], intded0[i])
# Apply interest haircuts
intTaxInc = (self.debts.get_intInc() *
(1. - self.btax_params['intIncome_corp_hc']) +
self.debts.get_muniInc() *
(1. - self.btax_params['muniIntIncome_corp_hc']))
intTaxDed = intded1 * (1. - self.btax_params['intPaid_corp_hc'])
# Compute net interest deduction
self.combined_return['nid'] = intTaxDed - intTaxInc
# Assign fraction of interest deductible to Debt object
fracded = intTaxDed / (self.debts.get_intPaid() + 0.000001)
self.btax_params['fracded_c'] = fracded
def calcInitialTax(self):
"""
Calculates taxable income and tax before credits.
"""
netinc1 = (self.combined_return['ebitda'] -
self.combined_return['taxDep'] -
self.combined_return['nid'])
self.combined_return['sec199'] = (netinc1 *
self.deductions['sec199share'] *
self.btax_params['sec199_rt'])
netinc2 = netinc1 - self.combined_return['sec199']
self.combined_return['taxinc'] = np.maximum(netinc2, 0.)
self.combined_return['tau'] = self.btax_params['tau_c']
self.combined_return['taxbc'] = (self.combined_return['taxinc'] *
self.combined_return['tau'])
def calcFTC(self):
"""
Gets foreign tax credit from DomesticMNE
"""
self.combined_return['ftc'] = self.dmne.dmne_results['ftc']
def calcAMT(self):
"""
Calculates the AMT revenue and PYMTC for [START_YEAR, END_YEAR]
"""
# Overall transition rates and parameters
trans_amt0 = self.data.trans_amt0
trans_amt1 = self.data.trans_amt1
userate = self.data.userate_pymtc
amt2013 = self.data.corp_tax2013.loc[40, 'ALL']
# Get relevant tax information
taxinc = np.array(self.combined_return['taxinc'])
amt_rates = np.array(self.btax_params['tau_amt'])
ctax_rates = np.array(self.btax_params['tau_c'])
pymtc_hc = np.array(self.btax_params['pymtc_hc'])
pymtc_refund = np.array(self.btax_params['pymtc_refund'])
# Create empty arrays for AMT, PYMTC, and stocks (by status)
A = np.zeros(NUM_YEARS)
P = np.zeros(NUM_YEARS)
stock0 = np.zeros(NUM_YEARS + 1)
stock1 = np.zeros(NUM_YEARS + 1)
# Set initial stocks using steady-state equations
stock0[0] = amt2013 / userate
stock1[0] = amt2013 * (trans_amt1 / (1. - trans_amt1) +
(1. - userate) / userate * (1. - trans_amt0) /
(1. - trans_amt1))
for iyr in range(NUM_YEARS):
# Calculate AMT
if amt_rates[iyr] == 0.:
# If no AMT
A[iyr] = 0.
frac_amt = 0.
# Update transition rate parameters
pi0 = 1.
pi1 = 0.
elif ctax_rates[iyr] <= amt_rates[iyr]:
# If AMT rate exceeds regular rate (all subject to AMT)
A[iyr] = ((amt_rates[iyr] - ctax_rates[iyr] +
amt_rates[iyr] / self.data.param_amt) * taxinc[iyr])
frac_amt = 0.999
# Update transition rate parameters
pi0 = 0.
pi1 = 1.
else:
A[iyr] = (amt_rates[iyr] / self.data.param_amt *
np.exp(-self.data.param_amt *
(ctax_rates[iyr] / amt_rates[iyr] - 1)) *
taxinc[iyr])
# Compute new fraction subject to AMT
frac_amt = np.exp(-self.data.param_amt *
(ctax_rates[iyr] / amt_rates[iyr] - 1))
# Adjust transition params for change in AMT frequency
pi1 = max(
min(
self.data.trans_amt1 *
(frac_amt / self.data.amt_frac)**0.5, 1.), 0.)
pi0 = max(min(1. - frac_amt * (1 - pi1) / (1 - frac_amt), 1.),
0.)
# Compute PYMTC
P[iyr] = ((pymtc_refund[iyr] * stock0[iyr] +
(1. - pymtc_refund[iyr]) * stock0[iyr] * userate) *
(1. - pymtc_hc[iyr]))
# Update credits carried forward
stock0[iyr + 1] = ((stock1[iyr] + A[iyr]) * (1. - pi1) +
(stock0[iyr] - P[iyr]) * pi0)
stock1[iyr + 1] = ((stock1[iyr] + A[iyr]) * pi1 +
(stock0[iyr] - P[iyr]) * (1. - pi0))
# Rescale for any cross-sector shifting
amt_final = A * self.data.rescale_corp
pymtc_final = P * self.data.rescale_corp
self.combined_return['amt'] = amt_final
self.combined_return['pymtc'] = pymtc_final
def calcTax(self):
"""
Calculates final tax liability.
"""
self.combined_return['gbc'] = self.credits['gbc']
# Calculate final tax liability
taxliab1 = (self.combined_return['taxbc'] +
self.combined_return['amt'] - self.combined_return['ftc'] -
self.combined_return['pymtc'] -
self.combined_return['gbc'])
self.combined_return['taxrev'] = np.maximum(taxliab1, 0.)
def calc_all(self):
"""
Executes all tax calculations.
"""
self.calcInterestDeduction()
self.calcInitialTax()
self.calcFTC()
self.calcAMT()
self.calcTax()
def getReturn(self):
"""
Returns the tax return information
"""
combined_result = copy.deepcopy(self.combined_return)
return combined_result
def get_tax(self):
"""
Returns the total tax liability.
"""
tax = np.array(self.combined_return['taxrev'])
return tax
assets14 = forecast[0]
return (scales, assets14, intpaid_model, intinc_model, muniinc_model)
(scales_corp, ast_c_14, intpaid_model, intinc_model, muniinc_model) = calcIDAdjustment(True)
(scale_ncorp, ast_nc_14, _, _, _) = calcIDAdjustment(False)
print(scales_corp)
print(scale_ncorp)
newdebt = copy.deepcopy(debt2)
newdebt['L_c'] = debt2['L_c'] * scales_corp[0]
newdebt['L_nc'] = debt2['L_nc'] * scale_ncorp
newdebt['At_c'] = debt2['At_c'] * scales_corp[1]
newdebt['An_c'] = debt2['An_c'] * scales_corp[2]
newdebt.to_csv(OUTPUT_PATH + 'debt_history.csv')
pol1 = Policy()
# Create Asset object
asset = Asset(pol1.parameters_dataframe(), True)
asset.calc_all()
# Create Debt object
debt = Debt(pol1.parameters_dataframe(), asset.get_forecast(), corp=True)
debt.calc_all()
df1 = pd.DataFrame({'inc_mod': intinc_model * scales_corp[1],
'paid_mod': intpaid_model * scales_corp[0],
'muni_mod': muniinc_model * scales_corp[2],
'inc_irs': taxint, 'paid_irs': intpaid, 'muni_irs': ntaxint})
df1.to_csv('debt_fit.csv')
class PassThrough():
"""
Constructor for the PassThrough class.
This contains the calculation of pass-through business income. All other
components of pass-through taxation occur through Tax-Calculator.
For now, a PassThrough object contains 6 different business entities:
sole proprietorship, positive net income
sole proprietorship, negative net income
S corporation, positive net income
S corporation, negative net income
partnership, positive net income
partnership, negative net income
Therefore, the process for modeling the pass-through sector evolves in
two stages. The first, like for the Corporation class, produces a single
Asset object, Debt object and earnings for the pass-through sector. Once
these are calculated, they are split between each of the 6 entities. The
results from these will later be used by the Investor class to distribute
the changes in business income to individuals in Tax-Calculator.
The following functions apply to the sector as a whole:
create_asset()
create_earnings()
create_debt()
real_activity()
"""
def __init__(self, btax_params):
# Store policy parameter objects
if isinstance(btax_params, pd.DataFrame):
self.btax_params = btax_params
else:
raise ValueError('btax_params must be DataFrame')
# Create Data object
self.data = Data()
# Create Asset object and calculate
self.asset = Asset(self.btax_params, corp=False, data=self.data)
self.asset.calc_all()
# Create earnings forecast
self.create_earnings()
def create_earnings(self):
"""
Creates the initial forecast for earnings. Static only.
"""
# Get initial EBITDA for 2014, for those in net income positions
sp_posinc2014 = np.array(self.data.sp_data['netinc'])[-1]
part_posinc2014 = np.array(self.data.partner_data['netinc_total'])[-1]
scorp_posinc2014 = np.array(self.data.Scorp_data['netinc_total'])[-1]
# Get initial EBITDA for 2014, for those in net loss positions
sp_neginc2014 = -np.array(self.data.sp_data['netloss'])[-1]
part_neginc2014 = -np.array(self.data.partner_data['netloss_total'])[-1]
scorp_neginc2014 = -np.array(self.data.Scorp_data['netloss_total'])[-1]
# Get growth factor for noncorporate business income and apply it
gfact_propinc = np.array(self.data.gfactors['propinc_nonfarm'])[1:]
sp_posinc = sp_posinc2014 / gfact_propinc[0] * gfact_propinc
part_posinc = part_posinc2014 / gfact_propinc[0] * gfact_propinc
scorp_posinc = scorp_posinc2014 / gfact_propinc[0] * gfact_propinc
sp_neginc = sp_neginc2014 / gfact_propinc[0] * gfact_propinc
part_neginc = part_neginc2014 / gfact_propinc[0] * gfact_propinc
scorp_neginc = scorp_neginc2014 / gfact_propinc[0] * gfact_propinc
# Aggregate and save EBITDAs
total_inc = (sp_posinc + sp_neginc + part_posinc + part_neginc +
scorp_posinc + scorp_neginc)
earnings_result = pd.DataFrame({'year': range(2014,2028),
'total': total_inc,
'SchC_pos': sp_posinc,
'SchC_neg': sp_neginc,
'partner_pos': part_posinc,
'partner_neg': part_neginc,
'Scorp_pos': scorp_posinc,
'Scorp_neg': scorp_neginc})
self.earnings = earnings_result
def create_debt(self):
"""
Creates the Debt object for the pass-through sector.
Note: create_asset must have already been called
"""
self.debt = Debt(self.btax_params, self.asset.get_forecast(),
data=self.data, corp=False)
self.debt.calc_all()
def real_activity(self):
"""
Produces a DataFrame of the pass-through sector's real activity.
Real measures are:
Capital stock
Investment
Depreciation (economic)
Debt
Interest paid
Earnings
Net income
Cash flow
Note that unlike for a corporation, the final real activity measures
(net income and cash flow) are pre-tax, as these would be passed to
units in Tax-Calculator.
"""
real_results = pd.DataFrame({'year': range(2014,2028),
'Earnings': self.earnings['total']})
real_results['Kstock'] = self.asset.get_forecast()
real_results['Inv'] = self.asset.get_investment()
real_results['Depr'] = self.asset.get_truedep()
real_results['Debt'] = self.debt.get_debt()
real_results['NIP'] = self.debt.get_nip()
real_results['NetInc'] = real_results['Earnings'] - real_results['Depr'] - real_results['NIP']
real_results['CashFlow'] = real_results['Earnings'] - real_results['Inv']
self.real_results = real_results
def calc_schC(self):
"""
Calculates net income for sole proprietorships
"""
SchC_results = pd.DataFrame({'year': range(2014,2028)})
# Update earnings
SchC_results['ebitda_pos'] = self.earnings['SchC_pos']
SchC_results['ebitda_neg'] = self.earnings['SchC_neg']
# Update tax depreciation
SchC_results['dep_pos'] = (self.asset.get_taxdep() * self.data.depshare_sp_posinc)
SchC_results['dep_neg'] = (self.asset.get_taxdep() * self.data.depshare_sp_neginc)
# Update interest deduction
SchC_results['intded_pos'] = (self.debt.get_nid() * self.data.intshare_sp_posinc)
SchC_results['intded_neg'] = (self.debt.get_nid() * self.data.intshare_sp_neginc)
# Update business net income
SchC_results['netinc_pos'] = SchC_results['ebitda_pos'] - SchC_results['dep_pos'] - SchC_results['intded_pos']
SchC_results['netinc_neg'] = SchC_results['ebitda_neg'] - SchC_results['dep_neg'] - SchC_results['intded_neg']
self.SchC_results = SchC_results
def calc_partner(self):
"""
Calculates net income for partnerships
"""
partner_results = pd.DataFrame({'year': range(2014,2028)})
# Update earnings
partner_results['ebitda_pos'] = self.earnings['partner_pos']
partner_results['ebitda_neg'] = self.earnings['partner_neg']
# Update tax depreciation
partner_results['dep_pos'] = (self.asset.get_taxdep() * self.data.depshare_partner_posinc)
partner_results['dep_neg'] = (self.asset.get_taxdep() * self.data.depshare_partner_neginc)
# Update interest deduction
partner_results['intded_pos'] = (self.debt.get_nid() * self.data.intshare_partner_posinc)
partner_results['intded_neg'] = (self.debt.get_nid() * self.data.intshare_partner_neginc)
# Update business net income
partner_results['netinc_pos'] = partner_results['ebitda_pos'] - partner_results['dep_pos'] - partner_results['intded_pos']
partner_results['netinc_neg'] = partner_results['ebitda_neg'] - partner_results['dep_neg'] - partner_results['intded_neg']
self.partner_results = partner_results
def calc_Scorp(self):
"""
Calculates net income for S corporations
"""
Scorp_results = pd.DataFrame({'year': range(2014,2028)})
# Update earnings
Scorp_results['ebitda_pos'] = self.earnings['Scorp_pos']
Scorp_results['ebitda_neg'] = self.earnings['Scorp_neg']
# Update tax depreciation
Scorp_results['dep_pos'] = (self.asset.get_taxdep() * self.data.depshare_scorp_posinc)
Scorp_results['dep_neg'] = (self.asset.get_taxdep() * self.data.depshare_scorp_neginc)
# Update interest deduction
Scorp_results['intded_pos'] = (self.debt.get_nid() * self.data.intshare_scorp_posinc)
Scorp_results['intded_neg'] = (self.debt.get_nid() * self.data.intshare_scorp_neginc)
# Update business net income
Scorp_results['netinc_pos'] = Scorp_results['ebitda_pos'] - Scorp_results['dep_pos'] - Scorp_results['intded_pos']
Scorp_results['netinc_neg'] = Scorp_results['ebitda_neg'] - Scorp_results['dep_neg'] - Scorp_results['intded_neg']
self.Scorp_results = Scorp_results
def calc_netinc(self):
"""
Runs all calculations for each entity and saves the net income results.
"""
self.calc_schC()
self.calc_partner()
self.calc_Scorp()
netinc_results = pd.DataFrame({'year': range(2014,2028)})
netinc_results['SchC_pos'] = self.SchC_results['netinc_pos']
netinc_results['SchC_neg'] = self.SchC_results['netinc_neg']
netinc_results['partner_pos'] = self.SchC_results['netinc_pos']
netinc_results['partner_neg'] = self.SchC_results['netinc_neg']
netinc_results['Scorp_pos'] = self.SchC_results['netinc_pos']
netinc_results['Scorp_neg'] = self.SchC_results['netinc_neg']
self.netinc_results = netinc_results
def calc_static(self):
"""
Runs the static calculations
"""
self.create_debt()
self.real_activity()
self.calc_netinc()
def update_legal(self, responses):
"""
Updates the rescale_corp and rescale_noncorp associated with each
Data associated with each object.
"""
self.data.update_rescaling(responses.rescale_corp, responses.rescale_noncorp)
self.asset.data.update_rescaling(responses.rescale_corp, responses.rescale_noncorp)
def update_investment(self, responses):
"""
Updates the Asset object to include investment response.
"""
# First, save the capital stock by asset type and year (for earnings)
self.old_capital_history = copy.deepcopy(self.asset.capital_history)
self.asset.update_response(responses.investment_response)
self.asset.calc_all()
def update_earnings(self, responses):
"""
Recalculates earnings using the old capital stock by asset type, the
new capital stock by asset type (based on the investment response),
and the marginal product of capital.
"""
Kstock_base = copy.deepcopy(self.old_capital_history)
Kstock_ref = copy.deepcopy(self.asset.capital_history)
deltaK = Kstock_ref - Kstock_base
changeEarnings = np.zeros((96, 14))
for j in range(14): # for each year
mpk = np.array(responses.investment_response['MPKnc' + str(j + 2014)])
for i in range(96): # by asset
changeEarnings[i,j] = deltaK[i,j] * mpk[i] * self.data.adjfactor_dep_noncorp
deltaE = np.zeros(14)
for j in range(14):
deltaE[j] = changeEarnings[:, j].sum()
earnings_old = np.array(self.earnings['total'])
ebitda_chgfactor = (earnings_old + deltaE) * self.data.rescale_noncorp / earnings_old
keylist = list(self.earnings)
for key in keylist:
self.earnings[key] = self.earnings[key] * ebitda_chgfactor
def update_debt(self, responses):
"""
Replaces the Debt object to use the new asset forecast and Data
"""
pctch_delta = np.array(responses.debt_response['pchDelta_corp'])
self.debt = Debt(self.btax_params, self.asset.get_forecast(),
data=self.data, response=pctch_delta, corp=False)
self.debt.calc_all()
def apply_responses(self, responses):
"""
Updates Data, Asset, earnings, and Debt to include
responses.
"""
assert isinstance(responses, Response)
self.update_legal(responses)
self.update_investment(responses)
self.update_earnings(responses)
self.update_debt(responses)
self.real_activity()
self.calc_netinc()
class Corporation():
"""
Constructor for the Corporation class.
This contains both the real and tax information relevant to the
corporate income tax.
"""
def __init__(self, btax_params):
# Store policy parameter objects
if isinstance(btax_params, pd.DataFrame):
self.btax_params = btax_params
else:
raise ValueError('btax_params must be DataFrame')
# Create Data object
self.data = Data()
# Create Asset object and calculate
self.asset = Asset(self.btax_params, corp=True, data=self.data)
self.asset.calc_all()
# Create DomesticMNE object
self.dmne = DomesticMNE(self.btax_params)
self.dmne.calc_all()
# Create earnings forecast
self.create_earnings()
def create_debt(self):
"""
Creates the Debt object for the Corporation.
Note: create_asset must have already been called
"""
self.debt = Debt(self.btax_params,
self.asset.get_forecast(),
data=self.data,
corp=True)
self.debt.calc_all()
def create_earnings(self):
"""
Creates the initial forecast for earnings. Static only.
"""
# Grab forecasts of profit growth
earnings_forecast = np.asarray(self.data.gfactors['profit'])
gfacts = earnings_forecast[1:] / earnings_forecast[0]
# 2013 values for non-modeled revenues
taxitems = np.array(self.data.corp_tax2013['ALL'])
receipts = taxitems[4] * gfacts
rent_inc = taxitems[7] * gfacts
royalties = taxitems[8] * gfacts
capgains = (taxitems[9] + taxitems[10] + taxitems[11] -
taxitems[32]) * gfacts
domestic_divs = taxitems[12] * gfacts
other_recs = taxitems[14] * gfacts
# 2013 values for non-modeled deductions and credits
cogs = taxitems[16] * gfacts
execcomp = taxitems[17] * gfacts
wages = taxitems[18] * gfacts
repairs = taxitems[19] * gfacts
baddebt = taxitems[20] * gfacts
rent_paid = taxitems[21] * gfacts
statelocaltax = taxitems[22] * gfacts
charity = taxitems[24] * gfacts
amortization = taxitems[25] * gfacts
depletion = taxitems[27] * gfacts
advertising = taxitems[28] * gfacts
pensions = taxitems[29] * gfacts
benefits = taxitems[30] * gfacts
sec199_base = taxitems[31] * gfacts
other_ded = taxitems[33] * gfacts
gbc = taxitems[42] * gfacts
# Save unodeled tax items
self.revenues = pd.DataFrame({
'year': range(START_YEAR, END_YEAR + 1),
'receipts': receipts,
'rent': rent_inc,
'royalties': royalties,
'capgains': capgains,
'domestic_divs': domestic_divs,
'other': other_recs
})
self.deductions = pd.DataFrame({
'year': range(START_YEAR, END_YEAR + 1),
'cogs': cogs,
'execcomp': execcomp,
'wages': wages,
'repairs': repairs,
'baddebt': baddebt,
'rent': rent_paid,
'statelocaltax': statelocaltax,
'charity': charity,
'amortization': amortization,
'depletion': depletion,
'advertising': advertising,
'pensions': pensions,
'benefits': benefits,
'sec199share': sec199_base,
'other': other_ded
})
self.credits = pd.DataFrame({
'year': range(START_YEAR, END_YEAR + 1),
'gbc': gbc
})
def file_taxes(self):
"""
Creates the CorpTaxReturn object.
"""
self.taxreturn = CorpTaxReturn(self.btax_params,
self.revenues,
self.deductions,
self.credits,
dmne=self.dmne,
data=self.data,
assets=self.asset,
debts=self.debt)
self.taxreturn.calc_all()
def real_activity(self):
"""
Produces a DataFrame of the corporation's real activity.
Real measures are:
Capital stock
Investment
Depreciation (economic)
Net debt
Net interest paid
Earnings
Tax liability
Net income
Cash flow
"""
real_results = pd.DataFrame({'year': range(START_YEAR, END_YEAR + 1)})
real_results['Earnings'] = (
self.revenues['receipts'] + self.revenues['rent'] +
self.revenues['royalties'] + self.revenues['capgains'] +
self.revenues['domestic_divs'] + self.revenues['other'] -
self.deductions['cogs'] - self.deductions['execcomp'] -
self.deductions['wages'] - self.deductions['repairs'] -
self.deductions['baddebt'] - self.deductions['rent'] -
self.deductions['charity'] - self.deductions['depletion'] -
self.deductions['advertising'] - self.deductions['pensions'] -
self.deductions['benefits'] - self.deductions['other'] +
self.dmne.dmne_results['foreign_directinc'] +
self.dmne.dmne_results['foreign_indirectinc'])
real_results['Kstock'] = self.asset.get_forecast()
real_results['Inv'] = self.asset.get_investment()
real_results['Depr'] = self.asset.get_truedep()
real_results['Debt'] = self.debt.get_debt()
real_results['NIP'] = self.debt.get_nip()
real_results['Tax'] = self.taxreturn.get_tax()
real_results['NetInc'] = (real_results['Earnings'] -
real_results['Depr'] - real_results['NIP'] -
real_results['Tax'] -
self.dmne.dmne_results['foreign_tax'] -
self.deductions['statelocaltax'])
real_results['CashFlow'] = (real_results['Earnings'] -
real_results['Inv'] - real_results['Tax'] -
self.dmne.dmne_results['foreign_tax'] -
self.deductions['statelocaltax'])
self.real_results = real_results
def calc_static(self):
"""
Runs the static calculations.
"""
self.create_debt()
self.file_taxes()
self.real_activity()
def update_legal(self, responses):
"""
Updates the rescale_corp and rescale_noncorp associated with each
Data associated with each object.
"""
self.data.update_rescaling(responses.rescale_corp,
responses.rescale_noncorp)
self.asset.data.update_rescaling(responses.rescale_corp,
responses.rescale_noncorp)
def update_investment(self, responses):
"""
Updates the Asset object to include investment response.
"""
# First, save the capital stock by asset type and year (for earnings)
self.old_capital_history = copy.deepcopy(self.asset.capital_history)
self.asset.update_response(responses.investment_response)
self.asset.calc_all()
def update_repatriation(self, responses):
"""
Updates the DomesticMNE object to include the repatriation response.
Also updates profits to reflect this response.
"""
# First, save current foreign earnings
self.dmne.update_profits(responses.repatriation_response,
responses.shifting_response)
self.dmne.calc_all()
def update_earnings(self, responses):
"""
Recalculates earnings using the old capital stock by asset type, the
new capital stock by asset type (based on the investment response),
and the marginal product of capital.
"""
Kstock_base = copy.deepcopy(self.old_capital_history)
Kstock_ref = copy.deepcopy(self.asset.capital_history)
changeEarnings = np.zeros((95, NUM_YEARS))
for iyr in range(NUM_YEARS): # for each year
ystr = str(iyr + START_YEAR)
mpk = np.array(responses.investment_response['MPKc' + ystr])
for i in range(95): # by asset
changeEarnings[i, iyr] = (Kstock_ref[ystr][i] -
Kstock_base[ystr][i]) * mpk[i]
deltaE = np.zeros(NUM_YEARS)
for iyr in range(NUM_YEARS):
deltaE[iyr] = changeEarnings[:, iyr].sum()
# Update new earnings
self.revenues['receipts'] = self.revenues['receipts'] + deltaE
def update_debt(self, responses):
"""
Replaces the Debt object to use the new asset forecast and Data
"""
pctch_delta = np.array(responses.debt_response['pchDelta_corp'])
self.debt = Debt(self.btax_params,
self.asset.get_forecast(),
data=self.data,
response=pctch_delta,
corp=True)
self.debt.calc_all()
def apply_responses(self, responses):
"""
Updates Data, Asset, earnings, Debt and CorpTaxReturn to include
responses. Then calc_all() for each object.
"""
assert isinstance(responses, Response)
self.update_legal(responses)
self.update_investment(responses)
self.update_repatriation(responses)
self.update_earnings(responses)
self.update_debt(responses)
self.file_taxes()
self.real_activity()
def get_netinc(self):
"""
Returns an array of the corporation's net income (after-tax).
"""
netinc = np.array(self.real_results['NetInc'])
return netinc
def get_taxrev(self):
"""
Returns an array of the corporation's tax liability.
"""
taxrev = np.array(self.real_results['Tax'])
return taxrev