{ From user Lonnie, Model Tax_bracket_interpol at 4-Apr-2018 3:44:33 PM, encoding="UTF-8" }
SoftwareVersion 5.1.0


{ System Variables with non-default values: }
SampleSize := 1000
TypeChecking := 1
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NodeInfo FormNode: 1,0,0,1,0,0,0,,0,0,,0,0


AskAttribute TableCellDefault,Variable,Yes

Model Tax_bracket_interpol
Title: Tax bracket interpolation
Description: A model 
Author: Lonnie Chrisman, Ph.D.~
Lumina Decision System
Date: Wed, Apr 4, 2018 8:26 AM
SaveAuthor: Lonnie
SaveDate: Wed, Apr 4, 2018 3:44 PM
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FontStyle: Arial,15
FileInfo: 0,Model Tax_bracket_interpol,2,2,0,0,W:\Training\Blog\Tax bracket interpolation.ana

Index Tax_bracket
Title: Tax bracket
Definition: [10%,15%,25%,28%,33%,35%,39.6%]
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Att_PrevIndexValue: [0.1,0.15,0.25,0.28,0.33,0.35,0.396]

Decision Filing_status
Title: Filing status
Description: Filing status of tax filer. Single, Married filing jointly, Married filing separately, or head of household.
Definition: Choice(Self,2)
NodeLocation: 136,56,1
NodeSize: 48,24
Aliases: FormNode Fo1522881477
Domain: ['Single','Married, joint','Married, separate','Head']
{!40300|DomainExpr: Discrete('Single','Married, joint','Married, separate','Head',type:['text'])}
{!40200|Att_ChoiceIndexes: Keyword Self}

Variable Bracket_top_income
Title: Bracket top income
Units: $
Description: For each tax bracket, this is the income level where the next tax bracket starts.
Definition: DetermTable(Tax_bracket,Filing_status)(~
9325,18.65K,9325,13.35K,~
37.95K,75.9K,37.95K,50.8K,~
91.9K,153.1K,76.6K,131.2K,~
191.65K,233.35K,116.675K,212.5K,~
416.7K,416.7K,208.35K,416.7K,~
418.4K,470.7K,235.35K,444.5K,~
INF,INF,INF,INF)
NodeLocation: 280,56,1
NodeSize: 48,24
DefnState: 2,59,779,519,234,0,DFNM
ValueState: 2,740,489,416,303,,MIDM
Aliases: Alias Al1522879500
ReformDef: [Sys_LocalIndex('DomainIndex'),Tax_bracket]
ReformVal: [Filing_status,Tax_bracket]
NumberFormat: 2,I,4,4,1,1,4,0,$,0,"ABBREV",0,,,0,0,15
TableCellDefault: 0
{!40700|Att_CellFormat: CellSpan(Tax_bracket,CellNumberFormat('Integer',thousandsSeparators:1,dateFormat:'ABBREV',fullPrecision:0,numbersAsDates:0,datesAsNumbers:0),7,header:0)}

Decision Taxable_income
Title: Taxable income
Units: $
Definition: 300k
NodeLocation: 144,216,1
NodeSize: 48,24
Aliases: FormNode Fo1522881478
NumberFormat: 2,I,4,2,1,1,4,0,$,0,"ABBREV",0,,,0,0,15

Variable Max_tax_in_bracket
Title: Max tax in bracket
Units: $
Description: This is the amount of tax paid at the given tax rate when your taxable income is greater that the upper limit of this tax bracket.
Definition: Uncumulate( Bracket_top_income, Tax_bracket ) * Tax_bracket
NodeLocation: 280,136,1
NodeSize: 48,24
ValueState: 2,184,713,921,251,1,MIDM
Aliases: Alias Al1522879723
NumberFormat: 2,F,4,2,1,1,4,0,$,0,"ABBREV",0,,,0,0,15

Function Round_income_1040( taxable_income )
Title: Round income for 1040 tax lookup
Description: Rounds income for tax table lookup. Although the tax computation for Form 1040 is essentially the tax bracket rate times the income that falls in that tax bracket, the tax tables add one complexity. If your taxable income is less that $3000, you need to "discretize" your income into $25 buckets and use the midpoint of that bucket, or for incomes between 3000 and 100K, you need to discretize the income into the appropriate $50 bucket and use the midpoint of that bucket before multiplying. For incomes above $100K, it simplifies to a straight multiplication with to rounding. This function rounds to the appropriate bucket centroid.~
~
For example, if your taxable income is $51,342, it falls in the bucket from $51,300 to $51,350. So you need to first round to $51,325 and then multiply by the corresponding tax rate(s).
Definition: if Taxable_income<5 then 0~
else if Taxable_income<15 then 10~
else if Taxable_income<25 then 20~
else if taxable_income <3000 then floor(taxable_income /25)*25 + 12.5~
else if taxable_income <100k then floor(taxable_income /50)*50 + 25~
else taxable_income
NodeLocation: 136,328,1
NodeSize: 80,24

Variable Rounded_taxable_inco
Title: Rounded taxable income
Units: $
Description: The taxable income after rounding to the centroid of the IRS tax table bin. Without this rounding, the simple computation differs from the IRS's tax due by a few dollars. For example, when your taxable income is $18,000 married filing jointly, your tax should be 10%. But the actual amount due is $1,803, rather than $1,800. This is because the $18,000 needs to be "rounded" to $18,025, the centroid of the appropriate bin in the Tax Tables, before multiplying by 10%. 
Definition: Round_income_1040( Taxable_income )
NodeLocation: 424,144,1
NodeSize: 48,32
ValueState: 2,764,48,424,654,,MIDM
Aliases: Alias Al1522879484

Variable Bracket_bottom_incom
Title: Bracket bottom income
Units: $
Definition: Bracket_top_income[@Tax_bracket = @Tax_bracket-1,defval:0]
NodeLocation: 424,56,1
NodeSize: 64,24
ValueState: 2,794,324,502,254,,MIDM
ReformVal: [Filing_status,Tax_bracket]
NumberFormat: 2,F,2,2,1,1,2,0,$,0,"ABBREV",0,,,0,0,15

Variable Subtraction_amount
Title: Subtraction amount
Units: $
Description: The amount saved by the lower tax rates for the first part of your income, compared to just multiplying your tax bracket by your total income. With this pre-compiled table, it makes it easy to find your tax due once you know your marginal tax rate.
Definition: (Bracket_bottom_income * Tax_bracket - Tax_up_to_bracket)[Tax_bracket=Marginal_rate, defVal:0]
NodeLocation: 600,224,1
NodeSize: 56,24
ValueState: 2,748,75,621,243,,MIDM
ReformVal: [Filing_status,Tax_bracket]
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{!50000|Att_ColumnWidths: [,Filing_status,\([87])]}

Objective tax_due
Title: tax due
Units: $
Description: The tax due for the year.
Definition: Round( Rounded_taxable_inco * Marginal_rate - Subtraction_amount )
NodeLocation: 736,144,1
NodeSize: 48,24
ValueState: 2,112,549,480,214,,MIDM
Aliases: FormNode Fo1522881488
ReformVal: [Filing_status,Tax_bracket]
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{!40700|Att_CellFormat: Undefined}

Variable Marginal_rate
Title: Marginal rate
Description: This is the tax bracket for the given taxable income. The marginal rate is the percentage tax you can expect to pay on the next dollar earned. 
Definition: StepInterp( Bracket_top_income, Tax_bracket, Rounded_taxable_inco, Tax_bracket )
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NumberFormat: 2,%,4,4,0,0,4,0,$,0,"ABBREV",0,,,0,0,15
Domain: Tax_bracket
{!40300|DomainExpr: Tax_bracket}

Variable Tax_up_to_bracket
Title: Tax up to bracket
Units: $
Description: This is the total tax assigned to all tax brackets up to, but not including, a given tax bracket.
Definition: Cumulate( Max_tax_in_bracket, Tax_bracket)[@Tax_bracket=@Tax_bracket-1, defVal:0]
NodeLocation: 280,224,1
NodeSize: 48,24
ValueState: 2,804,674,539,295,,MIDM
ReformVal: [Filing_status,Tax_bracket]

Module Alternate_ways_to_co
Title: Alternate ways to compute tax due
Description: The method of using a Subtraction Amount is not the only method possible for computing tax due. This module shows another methods, using Dispatch. I've included these for instructional purposes. Depreciation schedules often have a similar structure, and sometimes these techniques are a better match.
Author: Lonnie Chrisman, Ph.D.~
Lumina Decision Systems
Date: Wed, Apr 4, 2018 3:42 PM
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Objective Tax_due_using_Dispat
Title: Tax due using Dispatch
Units: $
Definition: Sum(Dispatch(Rounded_taxable_inco, Max_amt_taxed_in_bra, Tax_bracket) * Tax_bracket, Tax_bracket )
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ReformVal: [Filing_status,Null]
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Att__TotalsIndex: [Tax_bracket]
{!50000|Att_ColumnWidths: [,Tax_bracket,\([84,97,95,113,101,66,66,118])]}

Variable Max_amt_taxed_in_bra
Title: Max amt taxed in bracket
Units: $
Definition: Uncumulate( Bracket_top_income, Tax_bracket )
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Alias Al1522879484
Title: Rounded taxable income
Definition: 1
NodeLocation: 288,64,1
NodeSize: 48,32
Original: Rounded_taxable_inco

Alias Al1522879500
Title: Bracket top income
Definition: 1
NodeLocation: 128,184,1
NodeSize: 48,24
Original: Bracket_top_income

Alias Al1522879723
Title: Max tax in bracket
Definition: 1
NodeLocation: 128,288,1
NodeSize: 48,24
Original: Max_tax_in_bracket

Close Alternate_ways_to_co

FormNode Fo1522881477
Title: Filing status
Definition: 0
NodeLocation: 428,280,1
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Original: Filing_status

FormNode Fo1522881478
Title: Taxable income
Definition: 0
NodeLocation: 428,312,1
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Original: Taxable_income

FormNode Fo1522881488
Title: tax due
Definition: 1
NodeLocation: 428,344,1
NodeSize: 140,16
NodeInfo: 1,,,,,,0,96,,,,,,0
Original: tax_due

Close Tax_bracket_interpol