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PolicyEngine / policyengine-us

The PolicyEngine US Python package contains a rules engine of the US tax-benefit system, and microdata generation for microsimulation analysis.
https://policyengine.org/us
GNU Affero General Public License v3.0
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Abolishing housing subsidies affects cliffs #3406

Closed MaxGhenis closed 5 months ago

MaxGhenis commented 8 months ago

Per https://github.com/PolicyEngine/policyengine-app/issues/131#issuecomment-1845878921, abolishing cliffs currently affects cliffs:

image

This reform neutralizes spm_unit_capped_housing_subsidy, which is not in any formulas, nor is it yet simulated. It should not therefore affect marginal tax rates and cliffs, only affect participating households' net income by a flat amount in baseline and reform as reported.

This may reveal some leaking randomness in the microsimulation.

MaxGhenis commented 5 months ago

Closing for now as we don't currently display cliffs, but we can reopen after we reactivate it if it's still an issue