Model Interaction

Taxcalc-Payroll is a microsimulation model that conducts the static analysis of federal individual income and payroll taxes. It interacts with other models to conduct higher-level analysis, such as revenue estimation and non-static analysis.

Taxcalc-Payroll takes the input data (re-weighted PUF and CPS data) from Tax-Data to conduct tax revenue estimation. Taxcalc-Payroll works with the Behavioral-Responses package to conduct the conventional analysis.

Note that Tax-Calculator and Taxcalc-Payroll are highly integrated. Users can call most of Tax-Calculator’s functions from Taxcalc-Payroll. This means the user can perform both income tax and payroll tax analysis with the model. (this also holds for Tax-Calculator.)

Please refer to AEI’s OSPC webpage for a more detailed documentation.