Floor irs_employment_income at zero

changelog_entry.yaml

@@ -0,0 +1,4 @@
+- bump: patch
+  changes:
+    fixed:
+      - Floor irs_employment_income at zero.

policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/adjusted_gross_income/irs_gross_income/irs_employment_income.yaml

@@ -0,0 +1,16 @@
+- name: Pre-tax contributions exceed employment income.
+  period: 2024
+  input:
+    employment_income: 100
+    pre_tax_contributions: 200
+  output:
+    irs_employment_income: 0
+
+- name: Pre-tax contributions do not exceed employment income.
+  period: 2024
+  input:
+    employment_income: 100
+    pre_tax_contributions: 30
+  output:
+    irs_employment_income: 70
+

policyengine_us/variables/gov/irs/income/taxable_income/adjusted_gross_income/irs_gross_income/irs_employment_income.py

@@ -9,5 +9,7 @@ class irs_employment_income(Variable):
     documentation = "Employment income less payroll deductions."
     definition_period = YEAR
 
-    adds = ["employment_income"]
-    subtracts = ["pre_tax_contributions"]
+    def formula(person, period, parameters):
+        employment_income = person("employment_income", period)
+        pre_tax_contributions = person("pre_tax_contributions", period)
+        return max_(0, employment_income - pre_tax_contributions)

test.ipynb

@@ -36,6 +36,161 @@
     "EnhancedCPS_2022().generate()"
    ]
   },
+  {
+   "cell_type": "code",
+   "execution_count": 11,
+   "metadata": {},
+   "outputs": [],
+   "source": [
+    "from policyengine_us import Microsimulation\n",
+    "from policyengine_core.reforms import Reform\n",
+    "from policyengine_core.periods import instant"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": 12,
+   "metadata": {},
+   "outputs": [
+    {
+     "data": {
+      "text/plain": [
+       "0.0"
+      ]
+     },
+     "execution_count": 12,
+     "metadata": {},
+     "output_type": "execute_result"
+    }
+   ],
+   "source": [
+    "def use_reported_state_income_tax(parameters):\n",
+    "    parameters.simulation.reported_state_income_tax.update(\n",
+    "        start=instant(\"2024-01-01\"), stop=instant(\"2024-12-31\"),\n",
+    "        value=True)\n",
+    "    return parameters\n",
+    "\n",
+    "\n",
+    "class baseline_reform(Reform):\n",
+    "    def apply(self):\n",
+    "        self.modify_parameters(use_reported_state_income_tax)\n",
+    "\n",
+    "\n",
+    "sim = Microsimulation(reform=baseline_reform)\n",
+    "sim.calc(\"irs_employment_income\", period=2024).min()"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": 21,
+   "metadata": {},
+   "outputs": [
+    {
+     "data": {
+      "text/plain": [
+       "-5936.919"
+      ]
+     },
+     "execution_count": 21,
+     "metadata": {},
+     "output_type": "execute_result"
+    }
+   ],
+   "source": [
+    "sim.calc(\"household_tax_before_refundable_credits\", period=2024).min()"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": 15,
+   "metadata": {},
+   "outputs": [
+    {
+     "data": {
+      "text/plain": [
+       "0.0"
+      ]
+     },
+     "execution_count": 15,
+     "metadata": {},
+     "output_type": "execute_result"
+    }
+   ],
+   "source": [
+    "sim.calc(\"employee_payroll_tax\", period=2024).min()"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": 16,
+   "metadata": {},
+   "outputs": [
+    {
+     "data": {
+      "text/plain": [
+       "0.0"
+      ]
+     },
+     "execution_count": 16,
+     "metadata": {},
+     "output_type": "execute_result"
+    }
+   ],
+   "source": [
+    "sim.calc(\"self_employment_tax\", period=2024).min()"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": 20,
+   "metadata": {},
+   "outputs": [
+    {
+     "data": {
+      "text/plain": [
+       "-0.00019454956"
+      ]
+     },
+     "execution_count": 20,
+     "metadata": {},
+     "output_type": "execute_result"
+    }
+   ],
+   "source": [
+    "sim.calc(\"income_tax_before_refundable_credits\", period=2024).min()"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": 22,
+   "metadata": {},
+   "outputs": [
+    {
+     "name": "stdout",
+     "output_type": "stream",
+     "text": [
+      "income_tax_before_credits 0.0\n",
+      "net_investment_income_tax 0.0\n",
+      "recapture_of_investment_credit 0.0\n",
+      "unreported_payroll_tax 0.0\n",
+      "qualified_retirement_penalty 0.0\n",
+      "income_tax_capped_non_refundable_credits 0.0\n",
+      "spm_unit_state_tax_reported -6045.521\n"
+     ]
+    }
+   ],
+   "source": [
+    "# Print the min of each of these.\n",
+    "COLS = [\n",
+    "\"income_tax_before_credits\",\n",
+    "        \"net_investment_income_tax\",\n",
+    "        \"recapture_of_investment_credit\",\n",
+    "        \"unreported_payroll_tax\",\n",
+    "        \"qualified_retirement_penalty\", \"income_tax_capped_non_refundable_credits\", \"spm_unit_state_tax_reported\"]\n",
+    "for col in COLS:\n",
+    "    print(col, sim.calc(col, period=2024).min())"
+   ]
+  },
   {
    "cell_type": "code",
    "execution_count": null,