PolicyEngine / PolicyEngine/policyengine-us
MTRs for filer with employment and self-employment income differ from taxcalc
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tax
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- Python
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Description
Setting self-employment income to $100k in PolicyEngine US shows this MTR graph, hitting 57% around $195k employment income ($295k total income).
This differs from taxcalc; in https://compute.studio/PSLmodels/Tax-Cruncher/874 I entered $100k for business income and got this graph. That 57% MTR shows up around $95k earnings (which I assume means wages).
There might be some definitional reasons for these to diverge, but maybe also some implementation issues.
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