def test_incorrect_calc_all():
"""
Test incorrect call of calc_all method.
"""
# Do a quick "simulation" of executing response.calc_all(...) by setting
# one of the calculated responses to anything other than None
pre_calc_response = Response()
pre_calc_response.investment_response = 9.99
# Try to use pre_calc_response as argument to BusinessModel.calc_all method
bizmod = BusinessModel(Policy(), itax.Policy(),
investor_data='nodata.csv')
with pytest.raises(ValueError):
bizmod.calc_all(response=pre_calc_response)
def test_reforms(reform_number, reforms, puf_subsample, actual_vs_expect):
"""
Test BusinessModel corporate tax return results under reforms
with no response.
"""
bizmod = BusinessModel(reforms[reform_number]['policy_obj'],
itax.Policy(),
investor_data=puf_subsample)
bizmod.calc_all(response=None)
# compare actual and expected results
dec = 3
results = bizmod.corp_ref.taxreturn.combined_return.round(dec)
fname = 'bizmod_corp_ref{}_expect.csv'.format(reform_number)
actual_vs_expect(results, fname, precision=dec)
'newIntPaid_corp_hc': 1.0,
'newIntPaid_corp_hcyear': 2018,
'oldIntPaid_corp_hc': 1.0,
'oldIntPaid_corp_hcyear': 2018,
'newIntPaid_noncorp_hc': 1.0,
'newIntPaid_noncorp_hcyear': 2018,
'oldIntPaid_noncorp_hc': 1.0,
'oldIntPaid_noncorp_hcyear': 2018
}
}
# Create an individual-tax policy reform dictionary with no reform
iitax_refdict = dict()
# Create a BusinessModel object
BM = BusinessModel(btax_refdict, iitax_refdict)
# Execute the no-response calculations
BM.calc_noresponse()
# Look at the changes in total corporate and individual income tax liability
output_df = BM.ModelResults.round(3)
output_df.to_csv('example_results/nresp_model_results.csv', index=False)
# Take a closer look at corporate tax items under baseline and reform policy
output_df = BM.corp_base.taxreturn.combined_return.round(3)
output_df.to_csv('example_results/nresp_base.csv', index=False)
output_df = BM.corp_ref.taxreturn.combined_return.round(3)
output_df.to_csv('example_results/nresp_refm.csv', index=False)
# Look at differences in real effects on corporations without any responses
def test_bm_corp0(with_response, actual_vs_expect, puf_fullsample, tests_path):
"""
Test BusinessModel corporate results under a corporate-income-tax reform
using calc_norespone() and calc_withresponse() with zero elasticities,
checking that the two sets of results are the same.
"""
# ensure that expected results in the two with_response cases are the same
assert filecmp.cmp(os.path.join(tests_path,
'bm_corp0_base_nresp_expect.csv'),
os.path.join(tests_path,
'bm_corp0_base_wresp_expect.csv'),
shallow=False)
assert filecmp.cmp(os.path.join(tests_path,
'bm_corp0_refm_nresp_expect.csv'),
os.path.join(tests_path,
'bm_corp0_refm_wresp_expect.csv'),
shallow=False)
# specify corporate-income-tax reform dictionary with these provisions:
# - apply a 28% corporate tax rate
# - eliminate bonus depreciation
# - establish 50% haircut on the deductibility of interest on new debt
citax_refdict = {
2018: {
'tau_c': 0.28,
'depr_3yr_bonus': 0.0,
'depr_5yr_bonus': 0.0,
'depr_7yr_bonus': 0.0,
'depr_10yr_bonus': 0.0,
'depr_15yr_bonus': 0.0,
'depr_20yr_bonus': 0.0,
'depr_25yr_bonus': 0.0,
'depr_275yr_bonus': 0.0,
'depr_39yr_bonus': 0.0,
'pymtc_status': 1,
'newIntPaid_corp_hc': 1.0,
'newIntPaid_corp_hcyear': 2018,
'oldIntPaid_corp_hc': 1.0,
'oldIntPaid_corp_hcyear': 2018,
'newIntPaid_noncorp_hc': 1.0,
'newIntPaid_noncorp_hcyear': 2018,
'oldIntPaid_noncorp_hc': 1.0,
'oldIntPaid_noncorp_hcyear': 2018
}
}
# specify individual-income-tax reform dictionary with no reform provisions
iitax_refdict = {}
bizmod = BusinessModel(citax_refdict,
iitax_refdict,
investor_data=puf_fullsample)
# calculate results in different ways depending on value of with_response
if with_response:
bizmod.update_elasticities({}) # all elasticities are zero
bizmod.calc_withresponse()
else:
bizmod.calc_noresponse()
# compare actual and expected results
resp = 'wresp' if with_response else 'nresp'
dec = 4
results = bizmod.corp_base.taxreturn.combined_return.round(dec)
fname = 'bm_corp0_base_{}_expect.csv'.format(resp)
actual_vs_expect(results, fname, precision=dec)
results = bizmod.corp_ref.taxreturn.combined_return.round(dec)
fname = 'bm_corp0_refm_{}_expect.csv'.format(resp)
actual_vs_expect(results, fname, precision=dec)
def test_bm_corp0(with_response, actual_vs_expect,
puf_subsample, tests_path):
"""
Test BusinessModel corporate results under a corporate-income-tax reform
using calc_all(response=None) and calc_all(response=zero_elasticities),
checking that the two sets of results are exactly the same, which is what
is expected.
"""
# ensure that expected results in the two with_response cases are the same
assert filecmp.cmp(os.path.join(tests_path,
'bm_corp0_base_nresp_expect.csv'),
os.path.join(tests_path,
'bm_corp0_base_wresp_expect.csv'),
shallow=False)
assert filecmp.cmp(os.path.join(tests_path,
'bm_corp0_refm_nresp_expect.csv'),
os.path.join(tests_path,
'bm_corp0_refm_wresp_expect.csv'),
shallow=False)
# specify corporate-income-tax reform policy with these provisions:
# - apply a 28% corporate tax rate
# - eliminate bonus depreciation
# - establish 50% haircut on the deductibility of interest on new debt
btax_reform = {
'tau_c': {2018: 0.28},
'depr_3yr_bonus': {2018: 0.0},
'depr_5yr_bonus': {2018: 0.0},
'depr_7yr_bonus': {2018: 0.0},
'depr_10yr_bonus': {2018: 0.0},
'depr_15yr_bonus': {2018: 0.0},
'depr_20yr_bonus': {2018: 0.0},
'depr_25yr_bonus': {2018: 0.0},
'depr_275yr_bonus': {2018: 0.0},
'depr_39yr_bonus': {2018: 0.0},
'pymtc_hc': {2018: 1.0},
'newIntPaid_corp_hc': {2018: 1.0},
'newIntPaid_corp_hcyear': {2018: 2018},
'oldIntPaid_corp_hc': {2018: 1.0},
'oldIntPaid_corp_hcyear': {2018: 2018},
'newIntPaid_noncorp_hc': {2018: 1.0},
'newIntPaid_noncorp_hcyear': {2018: 2018},
'oldIntPaid_noncorp_hc': {2018: 1.0},
'oldIntPaid_noncorp_hcyear': {2018: 2018}
}
btax_policy_ref = Policy()
btax_policy_ref.implement_reform(btax_reform)
# specify individual-tax reform dictionary with no reform provisions
itax_reform = {}
itax_policy_ref = itax.Policy()
itax_policy_ref.implement_reform(itax_reform)
# calculate results in different ways depending on value of with_response
if with_response:
zero_elast_response = Response()
zero_elast_response.update_elasticities({}) # all zero elasticities
bizmod = BusinessModel(btax_policy_ref, itax_policy_ref,
investor_data=puf_subsample)
bizmod.calc_all(response=zero_elast_response)
else:
bizmod = BusinessModel(btax_policy_ref, itax_policy_ref,
investor_data=puf_subsample)
bizmod.calc_all(response=None)
# compare actual and expected results
resp = 'wresp' if with_response else 'nresp'
dec = 4
results = bizmod.corp_base.taxreturn.combined_return.round(dec)
fname = 'bm_corp0_base_{}_expect.csv'.format(resp)
actual_vs_expect(results, fname, precision=dec)
results = bizmod.corp_ref.taxreturn.combined_return.round(dec)
fname = 'bm_corp0_refm_{}_expect.csv'.format(resp)
actual_vs_expect(results, fname, precision=dec)
}
# Policies for business tax rules
pol_pre = Policy()
pol_pre.implement_reform(bdict1)
pol_post = Policy()
pol_post.implement_reform(bdict2)
# Policies for individual income tax rules
ipol_pre = taxcalc.Policy()
#ipol_pre.implement_reform(taxcalc.Policy.read_json_reform('2017_law.json'))
ipol_post = taxcalc.Policy()
#ipol_post.implement_reform(taxcalc.Policy.read_json_reform('TCJA.json'))
# Create and run model
bm = BusinessModel(btax_policy_ref=pol_post,
itax_policy_ref=ipol_post,
btax_policy_base=pol_pre,
itax_policy_base=ipol_pre)
bm.calc_all(response=None)
# Update the MTRs from taxcalc
bm.update_mtrlists()
# Create Response object
resp = Response()
resp.update_elasticities({
'debt_taxshield_c': 0.17,
'reprate_inc': -0.61,
'first_year_response': 2018
})
resp.calc_all(bm.btax_params_base, bm.btax_params_ref)
"""
import taxcalc as itax # capabilities of individual Tax-Calculator
from biztax import Policy, BusinessModel, Response
import pandas as pd
btax_reform_dict0 = {'tau_c': {2020: 0.20}}
# Create business Policy object
btax_policy_reform0 = Policy()
btax_policy_reform0.implement_reform(btax_reform_dict0)
# Create an individual-tax itax.Policy object with no reform
itax_policy_noreform0 = itax.Policy()
# Execute BusinessModel calculations with no response
BM0 = BusinessModel(btax_policy_reform0, itax_policy_noreform0,
investor_data='rpuf.csv')
BM0.calc_all(response=None)
print(BM0.model_results)
print('Change in corporate tax revenue ($B): ' +
str(sum(BM0.model_results['CTax_change'])))
btax_reform_dict1 = {
'depr_3yr_method': {2020: 'Expensing'},
'depr_5yr_method': {2020: 'Expensing'},
'depr_7yr_method': {2020: 'Expensing'},
'depr_10yr_method': {2020: 'Expensing'},
'depr_15yr_method': {2020: 'Expensing'},
def reforms():
reform_dict = dict()
# reform 0, the baseline
reform_dict[0] = Data().btax_defaults
# reform 1
btax_dict1 = {
2017: {
'tau_c': 0.3,
'depr_3yr_method': 'GDS',
'depr_3yr_bonus': 0.8,
'depr_5yr_method': 'ADS',
'depr_5yr_bonus': 0.8,
'depr_7yr_method': 'Economic',
'depr_7yr_bonus': 0.8,
'depr_10yr_method': 'GDS',
'depr_10yr_bonus': 0.6,
'depr_15yr_method': 'Expensing',
'depr_15yr_bonus': 0.6,
'depr_20yr_method': 'ADS',
'depr_20yr_bonus': 0.4,
'depr_25yr_method': 'EconomicDS',
'depr_25yr_bonus': 0.2,
'depr_275yr_method': 'GDS',
'depr_275yr_bonus': 0.2,
'depr_39yr_method': 'ADS',
'depr_39yr_bonus': 0.2,
'tau_amt': 0.0,
'pymtc_status': 1
},
2018: {
'netIntPaid_corp_hc': 0.5,
'sec199_hc': 0.5,
'ftc_hc': 0.5
}
}
bizmod = BusinessModel(btax_dict1, {})
reform_dict[1] = bizmod.btax_params_ref
del btax_dict1
del bizmod
# reform 2
btax_dict2 = {
2017: {
'oldIntPaid_corp_hcyear': 2017,
'oldIntPaid_corp_hc': 0.5,
'newIntPaid_corp_hcyear': 2017,
'newIntPaid_corp_hc': 1.0,
'oldIntPaid_noncorp_hcyear': 2017,
'oldIntPaid_noncorp_hc': 0.5,
'newIntPaid_noncorp_hcyear': 2017,
'newIntPaid_noncorp_hc': 1.0
},
2018: {
'undepBasis_corp_hcyear': 2018,
'undepBasis_corp_hc': 0.5,
'undepBasis_noncorp_hcyear': 2018,
'undepBasis_noncorp_hc': 0.5
}
}
bizmod = BusinessModel(btax_dict2, {})
reform_dict[2] = bizmod.btax_params_ref
del btax_dict2
del bizmod
return reform_dict
'oldIntPaid_noncorp_hc': {
2018: 1.0
},
'oldIntPaid_noncorp_hcyear': {
2018: 2018
}
}
btax_policy_reform = Policy()
btax_policy_reform.implement_reform(btax_reform_dict)
# Create an individual-tax itax.Policy object with no reform
itax_policy_noreform = itax.Policy()
# Execute BusinessModel calculations with no response
BM = BusinessModel(btax_policy_reform,
itax_policy_noreform,
investor_data='puf.csv')
BM.calc_all(response=None)
# Look at the changes in total corporate and individual income tax liability
output_df = BM.model_results.round(3)
output_df.to_csv('example_results/nresp_model_results.csv', index=False)
# Take a closer look at corporate tax items under baseline and reform policy
output_df = BM.corp_base.taxreturn.combined_return.round(3)
output_df.to_csv('example_results/nresp_base.csv', index=False)
output_df = BM.corp_ref.taxreturn.combined_return.round(3)
output_df.to_csv('example_results/nresp_refm.csv', index=False)
# Look at differences in real effects on corporations without any responses
corp_diff = (BM.corp_ref.real_results - BM.corp_base.real_results).round(3)