Tax Functions
Contents
Tax Functions¶
tax.py modules
ogcore.tax¶
Functions for taxes in the steady state and along the transition path.¶
- ogcore.tax.ETR_income(r, w, b, n, factor, e, etr_params, p)[source]¶
Calculates effective personal income tax rate.
- Parameters
r (array_like) – real interest rate
w (array_like) – real wage rate
b (Numpy array) – savings
n (Numpy array) – labor supply
factor (scalar) – scaling factor converting model units to dollars
e (Numpy array) – effective labor units
etr_params (Numpy array) – effective tax rate function parameters
p (OG-Core Specifications object) – model parameters
- Returns
effective tax rate on total income
- Return type
tau (Numpy array)
- ogcore.tax.ETR_wealth(b, h_wealth, m_wealth, p_wealth)[source]¶
Calculates the effective tax rate on wealth.
\[T_{j,s,t}^{w} = \frac{h^{w}p_{w}b_{j,s,t}}{h^{w}b_{j,s,t} + m^{w}}\]- Parameters
b (Numpy array) – savings
h_wealth (scalar) – parameter of wealth tax function
p_wealth (scalar) – parameter of wealth tax function
m_wealth (scalar) – parameter of wealth tax function
- Returns
effective tax rate on wealth, size = SxJ
- Return type
tau_w (Numpy array)
- ogcore.tax.MTR_income(r, w, b, n, factor, mtr_capital, e, etr_params, mtr_params, p)[source]¶
Generates the marginal tax rate on labor income for households.
- Parameters
r (array_like) – real interest rate
w (array_like) – real wage rate
b (Numpy array) – savings
n (Numpy array) – labor supply
factor (scalar) – scaling factor converting model units to dollars
mtr_capital (bool) – whether to compute the marginal tax rate on capital income or labor income
e (Numpy array) – effective labor units
etr_params (Numpy array) – effective tax rate function parameters
p (OG-Core Specifications object) – model parameters
- Returns
marginal tax rate on income source
- Return type
tau (Numpy array)
- ogcore.tax.MTR_wealth(b, h_wealth, m_wealth, p_wealth)[source]¶
Calculates the marginal tax rate on wealth from the wealth tax.
\[\frac{\partial T_{j,s,t}^{w}}{\partial b_{j,s,t}} = \frac{h^{w}m^{w}p_{w}}{(b_{j,s,t}h^{w}m^{w})^{2}}\]- Parameters
b (Numpy array) – savings
h_wealth (scalar) – parameter of wealth tax function
p_wealth (scalar) – parameter of wealth tax function
m_wealth (scalar) – parameter of wealth tax function
- Returns
marginal tax rate on wealth, size = SxJ
- Return type
tau_prime (Numpy array)
- ogcore.tax.bequest_tax_liab(r, b, bq, t, j, method, p)[source]¶
Calculate liability due from taxes on bequests for each household.
- Parameters
r (array_like) – real interest rate
b (Numpy array) – savings
bq (Numpy array) – bequests received
t (int) – time period
j (int) – index of lifetime income group
method (str) – adjusts calculation dimensions based on ‘SS’ or ‘TPI’
p (OG-Core Specifications object) – model parameters
- Returns
bequest tax liability for each household
- Return type
T_BQ (Numpy array)
- ogcore.tax.get_biz_tax(w, Y, L, K, p, method)[source]¶
Finds total business income tax revenue.
\[R_{t}^{b} = \tau_{t}^{b}(Y_{t} - w_{t}L_{t}) - \tau_{t}^{b}\delta_{t}^{\tau}K_{t}^{\tau}\]- Parameters
r (array_like) – real interest rate
Y (array_like) – aggregate output
L (array_like) – aggregate labor demand
K (array_like) – aggregate capital demand
- Returns
aggregate business tax revenue
- Return type
business_revenue (array_like)
- ogcore.tax.income_tax_liab(r, w, b, n, factor, t, j, method, e, etr_params, p)[source]¶
Calculate income and payroll tax liability for each household
- Parameters
r (array_like) – real interest rate
w (array_like) – real wage rate
b (Numpy array) – savings
n (Numpy array) – labor supply
factor (scalar) – scaling factor converting model units to dollars
t (int) – time period
j (int) – index of lifetime income group
method (str) – adjusts calculation dimensions based on ‘SS’ or ‘TPI’
e (Numpy array) – effective labor units
etr_params (Numpy array) – effective tax rate function parameters
p (OG-Core Specifications object) – model parameters
- Returns
- total income and payroll taxes paid for each
household
- Return type
T_I (Numpy array)
- ogcore.tax.net_taxes(r, w, b, n, bq, factor, tr, ubi, theta, t, j, shift, method, e, etr_params, p)[source]¶
Calculate net taxes paid for each household.
- Parameters
r (array_like) – real interest rate
w (array_like) – real wage rate
b (Numpy array) – savings
n (Numpy array) – labor supply
bq (Numpy array) – bequests received
factor (scalar) – scaling factor converting model units to dollars
tr (Numpy array) – government transfers to the household
ubi (Numpy array) – universal basic income payments to households
theta (Numpy array) – social security replacement rate value for lifetime income group j
t (int) – time period
j (int) – index of lifetime income group
shift (bool) – whether computing for periods 0–s or 1–(s+1), =True for 1–(s+1)
method (str) – adjusts calculation dimensions based on ‘SS’ or ‘TPI’
e (Numpy array) – effective labor units
etr_params (Numpy array) – effective tax rate function parameters
p (OG-Core Specifications object) – model parameters
- Returns
net taxes paid for each household
- Return type
net_tax (Numpy array)
- ogcore.tax.pension_amount(w, n, theta, t, j, shift, method, e, p)[source]¶
Calculate public pension benefit amounts for each household.
- Parameters
w (array_like) – real wage rate
n (Numpy array) – labor supply
theta (Numpy array) – social security replacement rate value for lifetime income group j
t (int) – time period
j (int) – index of lifetime income group
shift (bool) – whether computing for periods 0–s or 1–(s+1), =True for 1–(s+1)
method (str) – adjusts calculation dimensions based on ‘SS’ or ‘TPI’
e (Numpy array) – effective labor units
p (OG-Core Specifications object) – model parameters
- Returns
pension amount for each household
- Return type
pension (Numpy array)
- ogcore.tax.replacement_rate_vals(nssmat, wss, factor_ss, j, p)[source]¶
Calculates replacement rate values for the social security system.
- Parameters
nssmat (Numpy array) – initial guess at labor supply, size = SxJ
new_w (scalar) – steady state real wage rate
factor_ss (scalar) – scaling factor converting model units to dollars
j (int) – index of lifetime income group
p (OG-Core Specifications object) – model parameters
- Returns
- social security replacement rate value for
lifetime income group j
- Return type
theta (Numpy array)
- ogcore.tax.wealth_tax_liab(r, b, t, j, method, p)[source]¶
Calculate wealth tax liability for each household.
- Parameters
r (array_like) – real interest rate
b (Numpy array) – savings
t (int) – time period
j (int) – index of lifetime income group
method (str) – adjusts calculation dimensions based on ‘SS’ or ‘TPI’
p (OG-Core Specifications object) – model parameters
- Returns
wealth tax liability for each household
- Return type
T_W (Numpy array)