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‎changelog_entry.yaml‎

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- bump: minor
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changes:
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added:
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- Social Security and Medicare HI revenue tracking variables that properly separate taxation of benefits (TOB) by trust fund allocation.
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- Tier 1 (0-50%) and tier 2 (50-85%) taxable Social Security split variables.
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- TOB revenue variables for OASDI trust funds (tier 1) and Medicare HI trust fund (tier 2).
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- Payroll tax revenue aggregation variables for Social Security and Medicare.
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- Total revenue variables combining payroll taxes and taxation of benefits by trust fund (social_security_revenue, medicare_hi_revenue).
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- Revenue allocation parameters to enable policy modeling of trust fund credit rules.

‎policyengine_us/parameters/gov/irs/social_security/taxability/revenue_allocation/tier_1_to_oasdi.yaml‎

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description: Share of tier 1 Social Security benefit taxation revenue credited to OASDI trust funds
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metadata:
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unit: /1
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reference:
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- title: 26 USC 86 - Social security and tier 1 railroad retirement benefits
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href: https://www.law.cornell.edu/uscode/text/26/86
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values:
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1984-01-01: 1.0

‎policyengine_us/parameters/gov/irs/social_security/taxability/revenue_allocation/tier_2_to_medicare.yaml‎

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description: Share of tier 2 Social Security benefit taxation revenue credited to Medicare HI trust fund
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metadata:
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unit: /1
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reference:
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- title: 26 USC 86 - Social security and tier 1 railroad retirement benefits
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href: https://www.law.cornell.edu/uscode/text/26/86
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values:
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1993-01-01: 1.0

‎policyengine_us/tests/policy/baseline/gov/ssa/revenue/medicare_hi_revenue.yaml‎

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- name: Total Medicare revenue - worker with no benefits
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period: 2024
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input:
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people:
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person1:
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age: 30
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employment_income: 50_000
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tax_units:
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tax_unit:
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members: [person1]
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filing_status: SINGLE
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households:
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household:
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members: [person1]
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output:
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# Only payroll tax, no TOB
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# Payroll = 50_000 * 0.029 = 1_450
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medicare_hi_revenue: 1_450
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- name: Total Medicare revenue - high earner above additional threshold
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period: 2024
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input:
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people:
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person1:
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age: 30
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employment_income: 250_000
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tax_units:
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tax_unit:
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members: [person1]
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filing_status: SINGLE
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households:
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household:
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members: [person1]
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output:
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# Payroll = 7_700 (from payroll test)
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medicare_hi_revenue: 7_700
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- name: Total Medicare revenue - retiree with high SS and income
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period: 2024
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absolute_error_margin: 1
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input:
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people:
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person1:
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age: 67
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social_security: 30_000
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employment_income: 60_000
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tax_units:
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tax_unit:
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members: [person1]
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filing_status: SINGLE
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households:
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household:
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members: [person1]
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output:
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# Payroll = 60_000 * 0.029 = 1_740
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# TOB tier 2 revenue ≈ 3_113
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# Total ≈ 4_853
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medicare_hi_revenue: 4_853
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- name: Total Medicare revenue - zero income
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period: 2024
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input:
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people:
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person1:
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age: 67
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social_security: 0
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employment_income: 0
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tax_units:
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tax_unit:
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members: [person1]
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filing_status: SINGLE
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households:
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household:
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members: [person1]
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output:
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medicare_hi_revenue: 0

‎policyengine_us/tests/policy/baseline/gov/ssa/revenue/payroll_tax_revenue_medicare.yaml‎

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- name: Medicare payroll tax revenue - zero earnings
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period: 2024
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input:
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people:
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person1:
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age: 30
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employment_income: 0
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households:
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household:
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members: [person1]
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output:
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payroll_tax_revenue_medicare: 0
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- name: Medicare payroll tax revenue - standard earnings
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period: 2024
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input:
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people:
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person1:
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age: 30
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employment_income: 50_000
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tax_units:
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tax_unit:
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members: [person1]
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filing_status: SINGLE
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households:
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household:
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members: [person1]
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output:
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# Employee + employer Medicare tax
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# Rate = 1.45% + 1.45% = 2.9%
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# Revenue = 50_000 * 0.029 = 1_450
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payroll_tax_revenue_medicare: 1_450
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- name: Medicare payroll tax revenue - above additional threshold
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period: 2024
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input:
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people:
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person1:
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age: 30
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employment_income: 250_000
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tax_units:
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tax_unit:
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members: [person1]
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filing_status: SINGLE
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households:
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household:
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members: [person1]
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output:
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# Regular Medicare: 250_000 * 0.029 = 7_250
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# Additional Medicare (employee only): (250_000 - 200_000) * 0.009 = 450
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# Total = 7_250 + 450 = 7_700
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payroll_tax_revenue_medicare: 7_700

‎policyengine_us/tests/policy/baseline/gov/ssa/revenue/payroll_tax_revenue_social_security.yaml‎

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- name: SS payroll tax revenue - zero earnings
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period: 2024
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input:
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people:
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person1:
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age: 30
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employment_income: 0
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households:
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household:
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members: [person1]
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output:
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payroll_tax_revenue_social_security: 0
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- name: SS payroll tax revenue - standard earnings
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period: 2024
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input:
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people:
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person1:
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age: 30
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employment_income: 50_000
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households:
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household:
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members: [person1]
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output:
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# Employee + employer SS tax
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# Rate = 6.2% + 6.2% = 12.4%
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# Revenue = 50_000 * 0.124 = 6_200
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payroll_tax_revenue_social_security: 6_200
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- name: SS payroll tax revenue - above wage base
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period: 2024
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input:
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people:
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person1:
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age: 30
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employment_income: 200_000
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households:
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household:
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members: [person1]
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output:
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# 2024 wage base = 168_600
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# Revenue = 168_600 * 0.124 = 20_906.40
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payroll_tax_revenue_social_security: 20_906.40

‎policyengine_us/tests/policy/baseline/gov/ssa/revenue/social_security_revenue.yaml‎

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- name: Total SS revenue - worker with no benefits
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period: 2024
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input:
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people:
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person1:
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age: 30
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employment_income: 50_000
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tax_units:
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tax_unit:
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members: [person1]
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filing_status: SINGLE
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households:
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household:
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members: [person1]
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output:
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# Only payroll tax, no TOB
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# Payroll = 50_000 * 0.124 = 6_200
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social_security_revenue: 6_200
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- name: Total SS revenue - retiree with benefits and income
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period: 2024
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absolute_error_margin: 1
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input:
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people:
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person1:
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age: 67
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social_security: 20_000
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employment_income: 30_000
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tax_units:
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tax_unit:
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members: [person1]
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filing_status: SINGLE
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households:
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household:
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members: [person1]
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output:
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# Payroll = 30_000 * 0.124 = 3_720
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# TOB ≈ 495 (from TOB test)
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# Total ≈ 4_215
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social_security_revenue: 4_215
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- name: Total SS revenue - zero income
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period: 2024
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input:
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people:
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person1:
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age: 67
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social_security: 0
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employment_income: 0
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tax_units:
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tax_unit:
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members: [person1]
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filing_status: SINGLE
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households:
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household:
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members: [person1]
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output:
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social_security_revenue: 0

‎policyengine_us/tests/policy/baseline/gov/ssa/revenue/taxable_social_security_tier_1.yaml‎

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- name: Tier 1 - zero income
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period: 2024
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input:
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people:
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person1:
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age: 67
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social_security: 0
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tax_units:
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tax_unit:
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members: [person1]
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filing_status: SINGLE
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households:
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household:
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members: [person1]
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output:
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taxable_social_security_tier_1: 0
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- name: Tier 1 - below base threshold
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period: 2024
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input:
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people:
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person1:
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age: 67
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social_security: 20_000
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employment_income: 0
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tax_units:
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tax_unit:
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members: [person1]
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filing_status: SINGLE
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households:
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household:
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members: [person1]
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output:
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# Combined income = 0 + 0.5 * 20_000 = 10_000
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# Base threshold for SINGLE = 25_000
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# 10_000 < 25_000, so tier 1 = 0
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taxable_social_security_tier_1: 0
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- name: Tier 1 - between base and adjusted base
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period: 2024
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input:
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people:
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person1:
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age: 67
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social_security: 20_000
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employment_income: 20_000
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tax_units:
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tax_unit:
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members: [person1]
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filing_status: SINGLE
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households:
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household:
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members: [person1]
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output:
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# Combined income = 20_000 + 0.5 * 20_000 = 30_000
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# Base threshold = 25_000, adjusted base = 34_000
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# Excess over base = 30_000 - 25_000 = 5_000
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# Tier 1 = min(0.5 * 20_000, 0.5 * 5_000) = min(10_000, 2_500) = 2_500
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taxable_social_security_tier_1: 2_500
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- name: Tier 1 - above adjusted base
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period: 2024
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input:
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people:
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person1:
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age: 67
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social_security: 30_000
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employment_income: 50_000
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tax_units:
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tax_unit:
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members: [person1]
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filing_status: SINGLE
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households:
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household:
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members: [person1]
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output:
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# Combined income = 50_000 + 0.5 * 30_000 = 65_000
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# Base = 25_000, adjusted base = 34_000
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# Over adjusted base, so tier 1 = bracket amount
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# Bracket amount = min(amount_under_paragraph_1, 0.5 * (34_000 - 25_000))
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# amount_under_paragraph_1 = min(0.5 * 30_000, 0.5 * (65_000 - 25_000))
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# = min(15_000, 20_000) = 15_000
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# Bracket amount = min(15_000, 0.5 * 9_000) = min(15_000, 4_500) = 4_500
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taxable_social_security_tier_1: 4_500
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- name: Tier 1 - joint filing with high income
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period: 2024
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input:
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people:
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person1:
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age: 67
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social_security: 40_000
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employment_income: 60_000
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person2:
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age: 65
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social_security: 20_000
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employment_income: 40_000
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tax_units:
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tax_unit:
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members: [person1, person2]
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filing_status: JOINT
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marital_units:
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marital_unit:
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members: [person1, person2]
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marital_unit_id: 0
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households:
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household:
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members: [person1, person2]
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output:
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# Combined income = 100_000 + 0.5 * 60_000 = 130_000
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# Base for JOINT = 32_000, adjusted base = 44_000
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# Over adjusted base
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# Excess over base = 130_000 - 32_000 = 98_000
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# amount_under_paragraph_1 = min(0.5 * 60_000, 0.5 * 98_000)
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# = min(30_000, 49_000) = 30_000
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# Bracket amount = min(30_000, 0.5 * (44_000 - 32_000))
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# = min(30_000, 6_000) = 6_000
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taxable_social_security_tier_1: 6_000

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