Merge pull request #5386 from PolicyEngine/ut_state_reform

Add multiple state dependent exemptions to the repeal state dependent exemptions reform

changelog_entry.yaml

@@ -0,0 +1,4 @@
+- bump: minor
+  changes:
+    added:
+    - Add multiple state exemptions to the repeal of state dependent exemptions reform.

policyengine_us/parameters/gov/states/ut/tax/income/credits/taxpayer/personal_exemption.yaml

@@ -15,4 +15,3 @@ metadata:
       href: https://www.taxformfinder.org/forms/2021/2021-utah-tc-40-full-packet.pdf#page=9
     - title: 2023 TC-40  Utah Individual Income Tax Form (Line 11)
       href: https://tax.utah.gov/forms/current/tc-40inst.pdf#page=10
-

policyengine_us/reforms/state_dependent_exemptions/README.md

@@ -1,25 +1,30 @@
 The following adjustments have been made in this reform:
+Alabama: Neutralize dependent exemptions
+California: Remove the dependent exemption structure from `ca_exemptions`
+Georgia: Remove the dependent exemption structure from `ga_exemptions`
 Hawaii: Change the `exemptions_count` to `head_spouse_count`
+Illinois: Neutralize dependent exemptions
+Indiana: Change the `tax_unit_size` to `head_spouse_count`
+Iowa: Remove the dependent exemption structure from `ia_exemption_credit`
+Kansas: Remove the dependents from the exemption count
+Louisiana: Neutralize dependent exemptions
 Maryland: Change the `tax_unit_size` to `head_spouse_count`
+Massachusetts: Remove the dependent exemption structure from `ma_income_tax_exemption_threshold`
 Michigan: Change the `tax_unit_size` to `head_spouse_count`
+Minnesota: Neutralize dependent exemptions
+Mississippi: Neutralize dependent exemptions
+Montana: Neutralize the dependent exemptions person
 Nebraska: Change the `tax_unit_size` to `head_spouse_count`
+New Jersey: Neutralize dependent exemptions
+New Mexico: Neutralize the deduction for certain dependents
+New York: Neutralize dependent exemptions
+North Carolina: Neutralize the child deduction
 Ohio: Remove `is_tax_unit_dependent` from the exemption eligibility criteria
 Oklahoma: Remove the dependents from the total exemptions
 Rhode Island: Change the `exemptions_count` to `head_spouse_count`
+South Carolina: Neutralize dependent exemptions
+Utah: Neutralize the personal exemption amount
 Vermont: Remove the dependents from the personal exemptions
 Virginia: Only apply the personal exemptions to the head and spouse
 West Virginia: Change the `tax_unit_size` to `head_spouse_count`
-California: Remove the dependent exemption structure from `ca_exemptions`
-Georgia: Remove the dependent exemption structure from `ga_exemptions`
-Indiana:  Change the `tax_unit_size` to `head_spouse_count`
-Iowa: Remove the dependent exemption structure from `ia_exemption_credit`
-Kansas: Remove the dependents from the exemption count
-Massachusetts: Remove the dependent exemption structure from `ma_income_tax_exemption_threshold`
-Alabama: Neutralize dependent exemptions
-Illinois: Neutralize dependent exemptions
-Louisiana: Neutralize dependent exemptions
-Minnesota: Neutralize dependent exemptions
-Mississippi: Neutralize dependent exemptions
-New Jersey: Neutralize dependent exemptions
-New York: Neutralize dependent exemptions
-South Carolina: Neutralize dependent exemptions
+Wisconsin: Change the `tax_unit_size` to `head_spouse_count`

policyengine_us/reforms/state_dependent_exemptions/repeal_state_dependent_exemptions.py

@@ -371,6 +371,27 @@ def formula(tax_unit, period, parameters):
                 exempt_status.base[filing_status] + personal_exemptions_added
             )
 
+    # Using head and spouse count instead of exemptions count
+    class wi_base_exemption(Variable):
+        value_type = float
+        entity = TaxUnit
+        label = "Wisconsin base exemption"
+        unit = USD
+        definition_period = YEAR
+        reference = (
+            "https://www.revenue.wi.gov/TaxForms2021/2021-Form1f.pdf"
+            "https://www.revenue.wi.gov/TaxForms2021/2021-Form1-Inst.pdf"
+            "https://www.revenue.wi.gov/TaxForms2022/2022-Form1f.pdf"
+            "https://www.revenue.wi.gov/TaxForms2022/2022-Form1-Inst.pdf"
+            "https://docs.legis.wisconsin.gov/misc/lfb/informational_papers/january_2023/0002_individual_income_tax_informational_paper_2.pdf"
+        )
+        defined_for = StateCode.WI
+
+        def formula(tax_unit, period, parameters):
+            # compute base exemption amount
+            p = parameters(period).gov.states.wi.tax.income
+            return tax_unit("head_spouse_count", period) * p.exemption.base
+
     class reform(Reform):
         def apply(self):
             self.neutralize_variable("al_dependent_exemption")
@@ -381,6 +402,10 @@ def apply(self):
             self.neutralize_variable("nj_dependents_exemption")
             self.neutralize_variable("ny_exemptions")
             self.neutralize_variable("sc_dependent_exemption")
+            self.neutralize_variable("ut_personal_exemption")
+            self.neutralize_variable("nc_child_deduction")
+            self.neutralize_variable("nm_deduction_for_certain_dependents")
+            self.neutralize_variable("mt_dependent_exemptions_person")
             self.update_variable(hi_regular_exemptions)
             self.update_variable(md_total_personal_exemptions)
             self.update_variable(mi_personal_exemptions)
@@ -397,6 +422,7 @@ def apply(self):
             self.update_variable(ia_exemption_credit)
             self.update_variable(ks_count_exemptions)
             self.update_variable(ma_income_tax_exemption_threshold)
+            self.update_variable(wi_base_exemption)
 
     return reform
 

policyengine_us/tests/policy/baseline/gov/states/wi/tax/income/wi_additional_exemption.yaml

@@ -0,0 +1,25 @@
+- name: Aged head
+  period: 2022
+  input:
+    age_head: 65
+    state_code: WI
+  output:
+    wi_additional_exemption: 250
+
+- name: Aged head and aged spouse
+  period: 2022
+  input:
+    age_head: 65
+    age_spouse: 65
+    state_code: WI
+  output:
+    wi_additional_exemption: 500
+
+- name: No aged head or aged spouse
+  period: 2022
+  input:
+    age_head: 64
+    age_spouse: 64
+    state_code: WI
+  output:
+    wi_additional_exemption: 0

policyengine_us/tests/policy/baseline/gov/states/wi/tax/income/wi_base_exemption.yaml

@@ -0,0 +1,7 @@
+- name: WI exemption unit test 1
+  period: 2021
+  input:
+    exemptions_count: 5
+    state_code: WI
+  output:
+    wi_base_exemption: 5 * 700

policyengine_us/variables/gov/states/wi/tax/income/wi_exemption.py → policyengine_us/variables/gov/states/wi/tax/income/exemptions/wi_additional_exemption.py

@@ -1,10 +1,10 @@
 from policyengine_us.model_api import *
 
 
-class wi_exemption(Variable):
+class wi_additional_exemption(Variable):
     value_type = float
     entity = TaxUnit
-    label = "Wisconsin exemption"
+    label = "Wisconsin additional exemption"
     unit = USD
     definition_period = YEAR
     reference = (
@@ -17,16 +17,12 @@ class wi_exemption(Variable):
     defined_for = StateCode.WI
 
     def formula(tax_unit, period, parameters):
-        # compute base exemption amount
-        p = parameters(period).gov.states.wi.tax.income
-        base_amount = tax_unit("exemptions_count", period) * p.exemption.base
         # compute extra exemption amount
+        p = parameters(period).gov.states.wi.tax.income
         elderly_head = (
             tax_unit("age_head", period) >= p.exemption.old_age
         ).astype(int)
         elderly_spouse = (
             tax_unit("age_spouse", period) >= p.exemption.old_age
         ).astype(int)
-        extra_amount = (elderly_head + elderly_spouse) * p.exemption.extra
-        # return total exemption amount
-        return base_amount + extra_amount
+        return (elderly_head + elderly_spouse) * p.exemption.extra

policyengine_us/variables/gov/states/wi/tax/income/exemptions/wi_base_exemption.py

@@ -0,0 +1,22 @@
+from policyengine_us.model_api import *
+
+
+class wi_base_exemption(Variable):
+    value_type = float
+    entity = TaxUnit
+    label = "Wisconsin base exemption"
+    unit = USD
+    definition_period = YEAR
+    reference = (
+        "https://www.revenue.wi.gov/TaxForms2021/2021-Form1f.pdf"
+        "https://www.revenue.wi.gov/TaxForms2021/2021-Form1-Inst.pdf"
+        "https://www.revenue.wi.gov/TaxForms2022/2022-Form1f.pdf"
+        "https://www.revenue.wi.gov/TaxForms2022/2022-Form1-Inst.pdf"
+        "https://docs.legis.wisconsin.gov/misc/lfb/informational_papers/january_2023/0002_individual_income_tax_informational_paper_2.pdf"
+    )
+    defined_for = StateCode.WI
+
+    def formula(tax_unit, period, parameters):
+        # compute base exemption amount
+        p = parameters(period).gov.states.wi.tax.income
+        return tax_unit("exemptions_count", period) * p.exemption.base

policyengine_us/variables/gov/states/wi/tax/income/exemptions/wi_exemption.py

@@ -0,0 +1,19 @@
+from policyengine_us.model_api import *
+
+
+class wi_exemption(Variable):
+    value_type = float
+    entity = TaxUnit
+    label = "Wisconsin exemption"
+    unit = USD
+    definition_period = YEAR
+    reference = (
+        "https://www.revenue.wi.gov/TaxForms2021/2021-Form1f.pdf"
+        "https://www.revenue.wi.gov/TaxForms2021/2021-Form1-Inst.pdf"
+        "https://www.revenue.wi.gov/TaxForms2022/2022-Form1f.pdf"
+        "https://www.revenue.wi.gov/TaxForms2022/2022-Form1-Inst.pdf"
+        "https://docs.legis.wisconsin.gov/misc/lfb/informational_papers/january_2023/0002_individual_income_tax_informational_paper_2.pdf"
+    )
+    defined_for = StateCode.WI
+
+    adds = ["wi_base_exemption", "wi_additional_exemption"]