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PSLmodels / Cost-of-Capital-Calculator

A cost of capital and effective tax rate calculator
https://ccc.pslmodels.org
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Split of corporate and non-corporate assets for inventories and land #95

Open jdebacker opened 8 years ago

jdebacker commented 8 years ago

B-Tax yield much different ratios than was CBO (2007) finds. In particular, CBO finds: 1) Fraction of land owned by businesses facing corp tax treatment = 46.8% (B-Tax finds about 18%) 2) Fraction of inventories owned by businesses facing corp tax treatment = 72% (B-Tax finds about 60%).

A place to start is in read_bea.py, where these asset types are attributed across industry and tax treatment.

jdebacker commented 8 years ago

With better split to corporate partners, B-Tax now at: 1) 28% for corp land (vs CBO's 47%) 2) 63% for corp inventories (vs CBO's 72%)

Current differences may have to do with different methodologies between CBO and B-Tax for allocating the assets of partnerships to different partner types - in particular, how these are attributed to partners taking net losses.