This PR adds a few in-line comments, and it adds two JSONs for each of the policy parameters. Although these JSONs are not used yet, they should provide clarification on the meaning and use of the parameters. The main parameters are in brcparams_preTCJA.json. The one-time parameter changes are in brcparams_preTCJA_special.json.
The distinguishing features of the "special" parameters are that they can only be applied once. For example, setting the parameter undepBasis_corp_hc to 1 in 2019 would apply a 100 percent haircut to depreciation deductions taken in 2019 or later on investments made prior to 2019. These parameters alter tax policy going forward, but only apply to decisions made in the past. Thus, such changes are nondistortionary.
An example of the use of these variables would be in switching to a cash flow tax, which would involve eliminating net interest deductibility (setting the oldIntPaid_* and newIntPaid_* haircuts to 1), setting all bonus depreciation rates to 1 (or equivalently setting all depreciation methods to "Expensing"), and eliminating depreciation deductions on previously made investments (setting the undepBasis_* haircuts to 1).
The changes in this PR do not affect any calculations.
This PR adds a few in-line comments, and it adds two JSONs for each of the policy parameters. Although these JSONs are not used yet, they should provide clarification on the meaning and use of the parameters. The main parameters are in
brcparams_preTCJA.json. The one-time parameter changes are inbrcparams_preTCJA_special.json.The distinguishing features of the "special" parameters are that they can only be applied once. For example, setting the parameter
undepBasis_corp_hcto 1 in 2019 would apply a 100 percent haircut to depreciation deductions taken in 2019 or later on investments made prior to 2019. These parameters alter tax policy going forward, but only apply to decisions made in the past. Thus, such changes are nondistortionary.An example of the use of these variables would be in switching to a cash flow tax, which would involve eliminating net interest deductibility (setting the
oldIntPaid_*andnewIntPaid_*haircuts to 1), setting all bonus depreciation rates to 1 (or equivalently setting all depreciation methods to "Expensing"), and eliminating depreciation deductions on previously made investments (setting theundepBasis_*haircuts to 1).The changes in this PR do not affect any calculations.
@andersonfrailey @hdoupe @Abraham-Leventhal @lucassz