Evaluates the effect of US federal taxes on businesses' investment incentives
B-Tax is a model that can be used to evaluate the effect of US federal taxes on the investment incentives of corporate and non-corporate businesses. Specifically, B-Tax uses data on the business assets and financial policy, as well as microdata on individual tax filers, to compute marginal effective tax rates on new investments. In modeling the effects of changes to the individual income tax code, B-Tax works with Tax-Calculator, another open source model of US federal tax policy. B-Tax is written in Python, an interpreted language that can execute on Windows, Mac, or Linux.
B-Tax (Version 0.1.5)[Source code], https://github.com/open-source-economics/B-Tax
CC0 1.0 Universal (CC0 1.0) Public Domain Dedication
Results will change as the underlying models improve. A fundamental reason for adopting open source methods in this project is so that people from all backgrounds can contribute to the models that our society uses to assess economic policy; when community-contributed improvements are incorporated, the model will produce different results.
There are two common ways to get started with B-Tax:
The first way to use B-Tax is to download the source code and install the model on your machine. To do this, follow the following instructions:
Install the Anaconda distribution of Python
Clone this repository to a directory on your computer
From the terminal (or Conda command prompt), navigate to the directory to which you cloned this repository and run
conda env create -f environment.yml
source activate btax-dev (or
activate btax-dev if using a Windows machine)
Then install by
pip install -e .
Run the model with an example reform from terminal/command prompt by typing
You can adjust the
./run_examples/run_btax_example.py by adjusting the individual income tax reform (using a dictionary or JSON file in a format that is consistent with Tax Calculator) or other model parameters specified in the
Model outputs will be saved in the following files:
The CSV output files can be compared to the
./run_examples/*_expected.csv files that are checked into the repository to confirm that you are generating the expected output. If you run into errors running the example script, please open a new issue in the B-Tax repo with a description of the issue and any relevant tracebacks you receive.
The second way to use B-Tax is through a web application, Cost of Capital Calculator. This way allows you to generate estimates of marginal effective tax rates and the cost of capital across production industries, type of asset, and separately for corporate and non-corporate entites and different forms of financing. The web application is limited in that you cannot consider policy reforms to the individual income tax code.
Of course, you can get started with B-Tax both ways.