Household Tax Logic

ABMLP-X Household taxation behavioural logic: April 2024.

Flat Rate Taxation

flat-rate-tax.py

# Utility: Catch divide by zero error.
def zero_division(n, d):
    return n / d if d else 0

def flat_tax_to_pay(self, amount, rate):
    """ Flat rate tax to pay (wage and interest income). """
    tax_to_pay = Decimal(0)
    tax_to_pay = amount * zero_division(rate, 100)

    return tax_to_pay

Marginal Rate Taxation

marginal-rate-tax.py

def marginal_tax_to_pay(self, amount):
    """ Marginal rate tax to pay (wage only).

    Tax Bracket 0:
    No tax on any wage upto the first 50% of the historic average wage amount.

    Tax Bracket 1:
    Pay 60% tax on any remaining wage amount that is between 50% and 100%
    of the historic average wage amount.

    Tax Bracket 2:
    Pay 70% tax on any remaining wage amount that exceeds 100% of the
    historic average wage amount.    
    """
    marginal_tax_to_pay = Decimal(0)

    bracket_one_amount = Decimal(0)
    bracket_two_amount = Decimal(0)

    if amount <= Household.average_wage:
        bracket_one_amount = amount - (Household.average_wage * Decimal(0.5))
    else:
        bracket_one_amount = Household.average_wage * Decimal(0.5)
        bracket_two_amount = amount - Household.average_wage

    if amount > 0:
        marginal_tax_to_pay = ((bracket_one_amount * Decimal(0.6))
                                + (bracket_two_amount * Decimal(0.7)))

    return marginal_tax_to_pay

Taxation Strategy

tax-strat.py

def tax_strategy(self, start_tax_amount):
    """ Tax paid in the current step.
    
    start_tax_amount:
    An amount received from either,
    flat_tax_to_pay() or marginal_tax_to_pay().

    To research and develop..
    """
    def alpha_strat():
        # 1 == Pay 100% of the 'start_tax_amount'.
        payment_percentage = Decimal(1)

        return payment_percentage

    def beta_strat():
        # 1 == Pay 100% of the 'start_tax_amount'.
        payment_percentage = Decimal(1)

        return payment_percentage

    def gamma_strat():
        # 1 == Pay 100% of the 'start_tax_amount'.
        payment_percentage = Decimal(1)

        return payment_percentage

    # See Producer employment by type.
    strategy_by_household_type = {"alpha": alpha_strat,
                                  "beta": beta_strat,
                                  "gamma": gamma_strat}

    end_tax_amount = Decimal(0)

    strat_tax_percentage = strategy_by_household_type.get(self.type, lambda: 'Invalid')()

    end_tax_amount = start_tax_amount * Decimal(strat_tax_percentage)

    return end_tax_amount