MattHJensen
commented
8 years ago As part of step two:
Someone with knowledge of the open source models that could potentially be used to generate the required numerical results would:
- provide feedback on whether the models can actually generate the numerical results or if they would need enhancement.
- provide guidance on how to use the models to generate the required numerical results.@GoFroggyRun developed this notebook.
This became https://github.com/open-source-economics/plots/blob/master/contrib/tax_reform_viz_1/data.py.
Concept:
In the Internal Revenue Code, individuals’ itemized deductions narrow the tax base considerably and impose complexity, compliance burdens and are generally regressive in nature. Repeal (or reform) to the largest itemized deductions would significantly increase the amount of revenue raised thus could offset the cost of reducing marginal tax rates, base broadening, rate lowering tax reform.
This visualization widget will display the impact of repealing three itemized deductions, (individually or in combination): interest paid, charitable, and the state and local tax. The widget would 1) illustrate the reduction in tax complexity, compliance and fairness as proxied by the percentage of taxpayers itemizing by income percentile (line chart); 2) the distribution of the tax burden proxied by the net change in average tax by annual income (bar chart); 3) the government's total revenue (number); and 4) the potential revenue-neutral across-the-board rate reduction (number).)
Sketch:
Technical notes:
The interest paid deduction includes the mortgage interest deduction. The state and local tax deduction should include the deduction for state and local real estate taxes.
The microsimulation Tax-Calculator at www.github.com/open-source-economics/tax-calculator ought to be able to perform these calculations.