i 2 

The Treasury Personal Individual Income 

Tax Simulation Model 

Roy A. Wyscarver 

Treasury Department 

Contributors: Ralph B. Bristol 

Brenda G. James 

Walt Stromquist

Ben Okner 

OTA Paper 32 July 1978 

OTA Papers are circulated so that the preliminary findings of 

tax research conducted by staff members and others associated 

with the Office of Tax Analysis may reach a wider audience. 

The views expressed are those of the author, and do not reflect 

Treasury policy. Comments are invited, but OTA Papers should 

not be quoted without permission from the authors. Managing

editors are Michael Kaufman and Gary Robbins. 

Off ice of Tax Analysis

U.S. Treasury Department, Room1104 

Washington,. D.C. 20220 

Issued: July 1978 
THEASURY PERSOhAL INOIVIDlrAL INCLINE TAX MODEL. 27 JUN 78 

1 

ThE TGEASURY PERSONAL ItdOIVIDUIL INCOME 

TAX SIHULATICN MODEL 

ROY A, WYSCARVER 

CONTRIBUTORS: 

RALPH 6. BRISTOL 

BREhOA G, JAVES 

kALT STROMQUIST 

B�N OKNER 

OFFICE OF THE SECRETAHY OF THE TREASURY 

OFFICE of' TAX ANALYSTS 

JUNE 1978 
L 8 

THEASURY PERSONAL IhOIVIOUAL INCOME TAX MOOEL, 27 JUN 78 -1 

TABLE OF CONTENTS 

LIST GF TABLES -2 

LIST CF- FIGURES -S 

1. AB INTROOUCTION TC THE IkCOME TAX SIMULATICN MOOEL. 1-1 

1.1, FEOERAL INCOME TAX, 1-1 

1.2. THE TAX HGOEL. 1713 

1.13, USE OF THE MCGEL’S ESTIMATES. 1-5 

2. A OESCRIPTION GF TFE INCOME TAX RETbRN SAYPLES. 2- 1 

2.1. 

2.2. 

2.2.1,

2.2.2. 

2.2.3, 

2.2,U.

2.13,

t.13.1. 

2~3.2. 

2.#3.*3. 

Z.,z.u. 

2.U. 

2.U.l. 

2.U.Z. 

2,4,.3. 

2.4.4. 

2.5. 

2.5.1. 

2.5.2. 

2.5.3. 

2,S.U. 

2.6, 

2.6.1. 

2.6.2, 

2.6,3. 

2.6.4. 

INTROOUCTION 

1975 INCGME TAX RETURR 1/2 SAMPLE, 

A SHORT DESCRLPTION, 

SAMPLE COUNTS AND WEIGHTS, 

DATA RECORD SPECIFICITION, 

OTHU DOCUMENTATION, 

1975 INCQME TAX RETURN l/Z SAMPLE! 

A 3hORT DESCRIPTION, 

SAMPLE COUNTS AND WEIGHTS. 

DATA RECORD SPECIFICATION. 

CTHER DOCUMEbTATIUN, 

1978 INCCME TAX RETURN 112 SAMPLE: 

2- 1 

2-2 

2-2 

2-2 

2-2 

2-4 

FACKED 8 PAPPED 2-14 

2-14 

2-t5 

2-15 

2-16 

CAPPED 8 PACKEO 2-27 

2-27 

2-29 

2-29 

2-29 

A SHORT OESCRIPTION. 

3AMPLE COUNTS AN0 M�IGHT3. 

DATA RECORO SPECIFICATION, 

OTHER DOCUHENTATIDN. 

1975 MERGE0 SIE 8 SO1 SAMPLE: 

A SHORT DESCRIPTION. 

SAMPLE COUNTS AN0 kEIGHTS. 

DATA RECORD SPECIFICATION. 

OthER DOCUMEkTATIUN. 

1978 MERGED SI� 8 SO1 SAYPLEt 

A SHORT DESCRIPTION, 

SAMPL� COUNTS AND WEIGWTS. 

OATA RECORD SPECIFICATIONS. 

OTHER DcCUMENTATION, 

MAPPEC tb PA K D. 2-40 

2-40 

2-40 

2-41 

2-42 

MAPPEC AND PACKED. 2-55 

2-55 

2-55 

2-55 

2-56 

APPENOIX ASSUMMAAY OF THE SAMPLING METWCDOLOGY 2-69 

APPENOIX BIANGMALIES IN THE 1975 OATA BASE 2-76 

APPENOIX C:COMPARIWN OF THE 197s MODEL 8 SO1 2-82 

3. EXTRAPOLATION OF THE INCOME ‘TAX DATA, 3-1 

3.1. EXTRAPOLATION OF THE OATA BASk TO 1978 LEVEL8 3- 1 

3.1.1. TARGETS 3-1 

3,l.t. FIRST-STAGE EXTRAPOLATION 373 

3.1.3, THE 3ECGNO STAGE 3-4 

3.1.U. RESULTS OF THE EXTRAPOLATION 3-7 

3.1e5. POST-AOJUSTWENTS. 3-8 

3.1.S.1, TAX EXPENSE DEDUCTIONS. 3-9 

3.1.5.2. PEDICAL EXPENSE OEDUCfIOtV.. 3-9 
THEASUGY PERSONAL INDIVIDUAL INCOME TAX MODEL, 27 JlJN 78 -2 

TABLE OF CONTENTS 

3.1.5.3. CORRECT ICPUTED ITEMIZED DEDUCTICNS, 3-9 

APPENDIX A:MATHEMATICS OF STAGE I1 FOR 1978 3-10 

APPENDIX 8:OUPLICATING THE TREASURY PRGCEOURE FOR 1976 3-14 

40 IMPUTATION MEtHODOLCGIESa 4- 1 

4.1, IMPUTING OEDUCTIONS TO STANDARD DEDLCTION RETLRNS, 4-1 

4,1,1, RATIONALE FOR IMPUTATION, 4- 1 

4,1,2, GENERAL METHUDQLOGY, 4-1 

4,i,:, OTHER DOCUMENTATION, 49.2 

4.2. WIFE'S SHARE OF WAGES 8 SALARIES IWPUTPTIGh, 4-13 

4,t,l, RATfOE(ALE FOR IHPUTATION, 4-3 

U.2.2, GEN�RAL METHODOLOGY, Y73 

4.2.3, OTHER DQCUMENTATION. 4.6 

4 .*3 0 CHILD-CARE CREDIT IMPUTATION. 4-7 

4,t3,1. RATIONALE FOR IMPUTATLCN, 4-7 

U.3,2, GEkERAL METHODOLOGY, 4-? 

4,3,3. OTHER DOCUMENTATION, 4-e 

ib.4. STATE-LOCAL BONO 1NTERE;ST 4-9 

4,4,l. RATIONALE FUR IMPUTATION, 4-9 

4.4,2, GENERAL METHooaLaw 4-9 

4.4.3, OThER DOCUHENTATIQN, 4-1 1 

4,5, IMPUTATLON FOR 1978 SOCIAL SECURITY PAYROLL TAX 4-12 

4,S,1, RATIONALE FCR IMPUTATtUN 4-t2 

4.5.2. GENERAL METti000LOCY, 49i.2 

4,5,3, OTH�R DOCUHENTATION, 4m13 

So A GENERAL DESCRIPTION OF THE TAX MOOEL PRCGAAM, Sol 

5.1, INTRODUCTION, 5- 1 

5,2, DE3IGN PHILOSGPHV OF THE TAX MODEL, 5-1 

S,J3. PHASE I, 5-2 

5.4, PHASE II, 5-U 

5.5, PHASE III, 5-6 

5,6, OTHER SUBPROGRAMS AND CONTROL STREAVS, 5-8 

APPENDIX A:l975 TAX CALCULATCR 5-10 

APPENDIX 6%SU8ROUTINE UNPKER 5-1 1 

APPENDIX CtSUBROUTINE EXT-ENO 5-14 

APPENOIX DtTHE OVERLAY MAP OF XQT75 s- L6 

APPENDIX �: ThE 1978 TAX CALCULATOR 5-18 

6. A OESCRIPTION OF THE TAX MOOEL INPUT PARAYETERS, 6-1 

b,i, A GENERAL OVERVIEW, 6-1 

6.2, GENERAL LOGIC EDITING DATA CARDS, 6-2 

6.2.1, THE SSAMPLE CARD, 6-2 

6.2.2. CARD NUMBER 110: GENERAL LCGIC ShITCHES, 6'4 

6,2,3, CARD NUMBERS 111 g 1128 TABLE 1 PRINT COhTRCL, 6-9 

6,2,U, CARD NUMBERS 113 & 114: TABLE 2 PRINT CONTRCL, 6= 1,: 

6,2,S, CARD NUMBER 115: TABLE 3 PRINT COhTRCLa 6 - ft, 

6,2,6, CARD NUMBER 116: TABLE. 4 PRINT COhTRC3L. 6-14 
THEASURY PERSONAL INOIVIDUAL INCOME TAX MODEL, 27 JUN 78 7: 

TABLE OF CONTENTS 

bm2.7. CARD NUMBER 117: TA8LE 6 PRINT CCFITRCL. 6-15 

6.2,8. CARO NUMBER 118: TABLE 7 PRINT CChTRCLm 6 - 15 

6,t,9, CARO NUWBER 121 8 122: TABLE 4 STUBS, 6-19 

6.2,10. CARD NUMf3ER 123,1248125: TABLE Z STUB CHANGES, 6-z0 

6,2,11, CARD NUMBER 126: TA8LE 7 STUB CHANGES, 6-22 

6,2,lZ, CARD NUMBER 127: AGI CLASS BREAKPCIhTS. 6-24 

6,2,13, CARO NUMBER3 130-135: STGRING TkE RESULTS, 6-a5 

6,2,14, SUMMARY OF LOGIC & EDITING DATA CARDS, 6-26 

6,,3, TAX PARAMETER DATA CARDS. 6-29 

6.4?.19 INTRODUCTIGhm 6-29 

6,#3,t, TITLEX AND TITLEY CARDS, 6-29 

6,3,3, THE SCHANGE CARD. 6-30 

6,3,0, THE SPLNX, SPLNY, AND SPLNZ CARDS, 6-30 

6.83,S. PRESENT LAW DEDUCTION PARACETERSm 6-32 

6,,2,6, GENERATED DEDUCTIUN CATEGORIESo 6-37 

6,3,7. EXEMPTION ALLOkANCES 8 CREDITS. 6=39 

6,13,8, MISCELLANEOUS TAX PARAPETERS, 6-40 

6,4, TAX RATE3 DATA CARDS, 6-45 

6,4,1, THE %RATES DATA CARD, 6-45 

&.U,1,1* OPTION=OZ NO MORE RATE CHANGES, 6-46 

6.4.1.2, OPTIONol: METHODS OF CHANGING RATES, 6-46 

6,4,1,3, OPTION=t: AUTO GENERATfONt OLD VERSIOh, 6-46 

6,0,1,0, OPTIONS38 AUTO GENERATION, NE^ VERSION- 6=U6 

6.0.2, QIX METHODS TO CHANGE RATE SCHEDL'LES. 6-47 

6,4*2,1, METHOO 1:FLAT RATES. 6-50 

6,4,2,2, METHOD 2:TRUNCATE RATES, 6-50 

6,4,2,3, METHOD 3:ADJUST BY PERCENTAGE PCINTS, 6-50 

6,U,2,4, M�THOD 4:ADJUST BY A PERCENTAGE FACTOR, 6-51 

6,4,2.5. METHOD 5:REPLACEMENT OF THE RATE SCHEDULE, 6-5 1 

6,U,2,6, METHOD 6:INSERT, DELETE, OR MODIFY THE RATES, 6-52 

6,4,3, STACKING OPTIONS AND METHaOSm 6-54 

6,4,4, ORDER OF DATA INPUT, 6-56 

6.5, CONTRULSTREAM FOR A TAX MODEL RUN, 6-61 

7. A DESCRIPTION OF THE TAX MODEL OUTPUT, 7-1 

7-1, INTRODUCTION. 7-1 

7,2, SECTION it INPUT PARAMETER OUTPUT, 7-1 

7,2,1, SAMPLE DESCRIPTIONe f-1 

7,Zm2, GENERAL LOGIC AND EDITING. 7- 1 

7,Z,.3, PLAh Y TITLE CARD AND DEDUCTION wbTRIX OUTPUT, 7-1 

7,2,4, OThER TAX PARAMETER OUTPUT, 7-5 

1-2-5, TAX SCHEDULES OUTPUT. 7-5 

7043- SECTION 2: INTERMEDIATE OUTPUT, 7-10 

7,4, SECTION 13: TAeULATED TAX STATISTICS~ 7- 12 

7,4,1, TITLE PAGE. 7-12 

7.4-2, TAX CHANGE BY PERCENT CHANGE IN TAX, 7-12 

7-4.3. TABLE 1A: SUMMARY OF THE EFFECTS CF THE PROPGSAL 7-18 

7,0,U, TABLE 2: TAX CHANGE BY ABSOLUTE CHANGE IN.TAX, 7-22 
t 4 

TREASURY PERSONAL 

7,U,S, TAaLE 

7,4,6. TAeLE 

7,4,7, TABLE 

7,4,8, TABLE 

7,4,9, TAeLE 

INOIVIDUAL INCONE TAX MODEL, 27 ‘JUN 78 

TABLE OF CONTENTS 

3: SOLRCES OF INCOME 8 ADJUSTMENTS PO AGI, 

4: CREOITSI OEDUCTIONS, Ah0 EXEMPTIQNS, 

5: TAX CHANGE BY AGIr SCHEDLLEr g DEDUCT10 

6: DISTRIBUTION CF TAXAELE IkCCME AN0 TAX, 

7: OISTRIbUTION CF KETUf?NS eY EFFECTIkE TA 

7,4,10, TAt3LE 7A: AVERAGE INCOME TAX RATES, 

7,4.11, TABLE 16: SUMMARY EFFECTS OF PROPGSED TAX ChANG 

8. EXAMPLE OF TAX MOOEL INPUT CONTROL STREAMS. 

8,1, INTRODUCTION, 

9,2, SETUPS FOR STARTING MODEL RUNS, 

8,2,l, 3ETUP743: 1975 TAX LAW AND 1975 LEVELS, 

8,2,t, SETUP77: 1978 TAX LAN AN0 1978 LEVELS, 

8,rZ. EXAMPLE RUNS EMPLOYING DATA CARDS, 

8,3.1, EXAMPLE 1, 

8,1,1,1, STATEMENT OF THE PROPOSAL, 

8,3,1,2, INPUT ELEMENT FOR THE EXAMPLE PRGPCSAL, 

8,3,2e EXAMPLE 2, 

8u3etele STATEHEN1 OF THE PROPOSAL, 

8,,?..2.2. INPUT ELEMENT FOR THE EXAMPLE PROPCSAL, 

8.~3~3. EXAMPLE 3,

8,Ie3,la STATEMENT OF THE PROPOSAL. 

8,3,3,2, INPUT ELEMENT FOR THE EXAMPLE PROPOSALe 

8,4, EXAMPLE RUNS EMPLOYING PROGRAM MOOIFICATIONS, 

a,4,i, EXAMPLE 4, 

8,4,1,1, STATEMENT OF THE PROPOSAL, 

0,4.1,2, IhuPUf ELEME~JTFOR THE EXAMPLE PROPOSAL. 

8.4,2, EXAMPLE 5, 

8,U,Ze1. STATEMENT OF THE PROP03AL, 

8,4.2,2. INPUT ELEPENT FOR ThE EXAMPLE PRGPQSAL, 

8,4,3, EXAMPLE 6, 

8,4,3,1, STATEMENT OF THE PROPOSAL, 

8,4.3.2, INPUT ELEMENT FOR THE EXAMPLE PROPOSAL. 

8,5, PRINTOUT OF INDIVIDUAL RETURNS, 

8.5.1, PURPOSE, 

8,5,2, USER PROCEDURE. 

8,5,2,1, ENTRY. 

8w5e3e EXAHPLE RUN, 

8,5,3,1, STATEMENT OF EXAMPLE PROBLEM. 

8.5,3.2, INPUT ELEMENT FOR THE EXAMPLE PROBLEM. 

8.6, BURDEN TABLES, 

8,6,1. PURPOSE. 

8,6,2, USER Pf?CCEOURE, 

8e6eteie ENTRY, 

8e6c2,2, R�31RICTfCNSe 

8,6,2,3, SPECIAL CGNSIDERATIONNS, 

8,6,3. INPUT DATA, 

8,6,4, EXAMPLE RUN, 

-4 

7-23 

7-29 

7-29 

7-35 

7-4 1 

7-4 1 

7-47 

8- 1 

8-1 

8-2 

8-2 

8-2 

8q3

$93 

8-3 

693 

8-5 

8-5 

8-5 

8-7 

0-7 

8-7 

6-9 

8-9 

8-9 

8-9 

8-11 

8-1 1 

8.11 

8-13 

8-13 

8- L3 

8-15 

8- 15 

8-15 

8-15 

8-16 

8- 16 

8- l4 

8-18 

8-18 

8-18 

8-18 

8-19 

8-20 

8-20 

8-20 
TREASURV PERSONAL INDIVIDUAL INCOME TAX MODEL. 27 JUh 78 -5 

TABLE OF CONTENTS 

8.6.4.1. STATEMEIvT OF EXAMPLE PROBLEM. 8-20 

8.60402, IIvPUT ELEBENT FOR THE EXAMPLE PROBLEM. 8-20 

8.7. SPECIAL TABULATIONS,

8.7.1. PURPOSE. 

t 8-22 

8-22 

8.7.2, USER PRCCEDURE, 8-22 

8,7.2.1. EhTRY. 8-22 

0.7.2o20 RESTRICTIONSe 8-23 

8.7,2,3, SPECIAL CONSIDERATIGNS. 8-a3 

8.7.2.4. CTHER SUBPROGRAMS REQUIRED. 8-23 

e.7.2.5. ERROR RETURNS, e-a33 

8.fm83. INPUT DATA. 8-24 

8.7,3,1. TITLE CARDS. 8-24 

8.7,3.2. COLUMN HEADING CARDS, 8-24 

8.7.4. EXAMPLE RUN, 8-25 

8.7,4.1. INPUT ELEPChT FOR EXAMPLE RUN, 8-25 

8.7.4,2. OUTPUT FCR EXAMPLE RUN. 8-27 

8,8, FILING UNIT SIZE TABULATIONS, 8-28 

8,8.l. PURPOSE 8-28 

8,e.t. USER PROCEDURE 8-28 

8meo2.1. ENTRY 8-28 

8.8.2.2. RESTRICTIONS 8-29 

8,8,2,3, SPECIAL CGN8IDERATfGNS, 8-29 

8.8.2.U. OTHER SUBPROGRAMS REQUIRED, 8-23 

8.8,t.S. ERROR ROUTINES. 8-29 

8,8,3. INPUT DATA, 8-29 

8.804. EXAMPLE RUN, 6-29 

8,8,4,1, INPUT ELEMENT FOR EXAMPLE RUN. 8-29 

8.8.4.2, OUTPUT FOR THE EXAMPLE RUN. 8-31 

8.9. SUBROUTINE DEBUG, 8-32 

8.9,1. PURPOSE 8-32 

8.9.2, USER PROCEDURE, a132 

8,9.2.1. ENTRY 8-32 

8.9,2,2, RESTRICTIONS 8-32 

8,9.2,3, SPECIAL CONSfDEAATLCNSo 8-22 

6.9.2,4. OTHER SUBPROGRAM8 REQUIRED, 8-33 

8.9.2.5. ERROR RETURNS. 8-33 

8.9.*3. INPUT DATA, 8-33 

8,9,4. SAMPLE RUN. 8-34 

8,9.4.1, INPUT ELEMENT FOR EXAMPLE RUN. 8-34 

8,9.4.2. OUTPUT FOR EXAMPLE RUN, 8-36 

90 TAX MOOEL CIAGIUOSTIC MESSAGES, 9-1 

10, GLOSSARY OF VARIAeLE NAMES IN THE TAX PGoEL~ 10-1 

11. USER NOTEfi. 11-1 

11.1. USER NOTE NUMeER it VERSION 32 OF ThE TAX MODEL. 11-1 

11.1.1. INPUT CHANGES. 11-1. 
THEASURV PERSONAL INDIVIDUAL INCOME TAX MODEL. 27 JON 78 '6 

TABLE OF CONTENTS 

11.1.2. OUTPUT ChAhGES. 11-1 

11.1.3, COMPUfATIQhAL CHANGES. 11-2 

11.1.4. TECHNICAL CHANGES. 11-6 

11.2, USER NOTE NUMBER 2: REVISEQk A OF VERSION 3, 11-8 

11.2.1. TECHNICAL.CHANGE. 11-6 

11.3. USER NOTE NUM6ER 3; AEbISION 8 OF VER310N 3. 11-11 

11 .,3.1 . TECHNICAL CHANGE. 11-11 

11.4. NUMBER 4: REVI3IOIV

11.5. 

11o5oto 

11.SoZo 

11,5y3.

ll.S.4. 

11.5.5, 

11.6, 

11.6.1, 

11.6.2,

ll.L,3. 

11.6.4. 

11.6.5. 

11.7. 

11.7.1o 

11.7.2. 

11.7.3. 

ll.7,4. 

11.7.5,

11.8, 

ti.8.i. 

11.8.2, 

11.8,3,

11.0.U. 

11.8,S. 

USER NOTE C CF VERSION 3. 11-12 

USER NOTE NUMBER 5: REVISION D (31; VERSIOtv 3. 1l-L: 

CORRECTIONS. ll-L3 

INPUT CHANGES. ll-b3 

OUTPUT CHANGES. 11-14 

TECHNICAL CHANGES, ll-b6 

COMPUTATIONAL CHANGES, 11=17 

USER NOTE NUMBER 6: VERSION 4 OF TkE TAX MOOEL, 11-18 

CCRRECTIONS, 

INPUT CHANCES. 

OUTPUT CHAkGES. 

TECHNICAL CHANGES, 

CCMPUfATIOhAL CHANGES, 

USER NOTE NUMBER 7: VEGSlON 5 

CORRECTIONS* 

INPUT CHANGES. 

OUTPUT ChAhGE3, 

TECHNSCAL CHANGES 

COMPUTATIONAL CHANGES, 

USER NOTE NUPSER 8: VERSLON 6 

CoRRmroNs, 

INPUT CHAIUGES. 

OUTPUT ChANGES. 

TECHNICAL CHANGES. 

COHPUTATIONIL CHANGES. 

11-10 

11-18 

11-1.9 

11-20 

11-21 

OF ThE TAX MODEL 1 1 -23 

11-ai 

11-23 

11-24 

11-24 

11-25 

OF Th� TAX HODEL. 11-26 

11-26 

11-46 

11=26 

11-27 

11-27 

12-1 

12-1 

12-1 

12-1 

12-1 

12-2 

12-2 

12-2 

1293 

12-l: 

12-6 

112. TABLEMAKER PROGRAMS, 

12.1. TABLEMAKER DIRECTORY PRCGRAM, 

12.1.1, PURPOSE. 

12.1.2. USER PROCEDURE. 

12.1,2,1. ENTRY, 

12.1.2.2. DIRECTORY NAME. 

12.1.2.3, fA3K QUESTIOEII 

12*1.2.4, QUERY RESPONSE. 

lZ,l.2.S. FULL RESPONSE. 

12.1.2.6, SEARCH RESPONSE, 

12.1.2.7, EXIT 
TREASCIRY PERSONAL IhDIVIDUAL INCOME TAX MODEL. 27 JUN 78 92 

CHAPTER 2. 

2.2.1 CODES, STRATllNr AN0 NUM6ER OF RETbRhS FOR THE 1975 

INDIVIDULAL ItvCOME TAX RETURN HALF-SAMPLE 2-3 

DATA RECORD SPECIFICATIOh FCR ThE 1675 -

INDIVlDUAL INCOME TAX RETURN HALF-SAMPLE 

UNPAPPED AND UNP4CKED. 2-5 

DATA RECORD SPECIFICATION FOR THE 1975 

INDIVIDUAL INCOME TAX RETURN kALF9SAMPI.E 

MAPPED AND PACKED, 2-17 

DATA RECORD SPECIFICATIOb FCiR THE 1078 

IhOIVIDUAL IhCOtIE TAX RETURN HALF-SAMPLE 

MAPPEG AND PACKED. 2-30 

CODES, STHATUM, AND NUMBER OF RETURhS FOR 

THE 1975 MERGED INOIVIOUAL INCOME TAX 

RETURN FULL SAMPLE 2941 

OATA RECORO SPECIFICATION FOR THE 1975 MERGED 

INOIVIOUAL INCOME TAX RETURN FULL-SAMPLE, 

MAPPED AN0 PACKED 2-42 

DATA RECORD SPECIFICATIOh FOR THE 1978 MERGED 

INDIVIDUAL INCOME TAX RETURN FULL=SAMPL�r 

MAPPED AND PACKED 2-57 

SAMPLING RATIOS BY REGIONAL GROUP Ah0 BY 

SAMPLE CLAN 2-70 

SAMPLING RATES FOR REALLCCATED RETURhS 2-?2 

STANOARD ERRORS OF ESTIMATE FGR EIGkT VARIABLfS 

CONSIDERED A3 STRATIFYIhG VARIAt3LE3 FOR 

OPTIMLZATION OF THE TAX MODEL SUBSAPPLE 2-74 

SAMPLING RATES FOR THE 

ON TAXES PAID 

COWPAdISON OF THE 1975 

PAELIMINAHY 197s SOL 

COMPARISOh QF THE 1975 

PRELIMINAHY 1975 SOI, 

COMPAdISON CF ThE 1975 

PHELIMINARY 1975 So11 

SOK SUBSAMPLE OPTIMIZED 

2-7.5 

TAX MODEL kITb THE 

ALL RETURNS 2-85 

TAX MGDEL bIlb ThE 

TAXABLE RETLRhS 2.86 

TAX MCDEL hITH THE 

Noh-TAXABLE RETURkS 2-87 

CUMPAHISOh GF ThE 1975 TAX MCCEL kET lhCGME ITEMS 

NITh THE PRELIMIbARY 197s SCI NET IhCCMYE ITEMS 

FOR ALL, TAxAi3LE 8, kGN-TAXABLE RETLFihiS .we 

CHAPTEF 3. 

3.1.1 TARGETS USEC IN EXTHAPCLATING THE TAX 

PUD�L TCI 1978 LEVELS 3-2 

3.1.2 RESULTS OF STAGE 11: DISTRIBUTIOh CF 

RETURhS BY RATID OF NEW TO CLC WEIGFTS 3-8 

3.6.1 MULTIPLIERS USE0 FOR THt 1976 

EXTRAPCLATICN 3-23 
ChAPTEF 4. 

4.2.1 wlFE'S SPARt CF TCTAL kAGES 8 SALbEiES 1972. 4-5 

4.4.1 ESTIMAT~GOISTRlBUT10h LF IkOIVICLPLS STATE-LCCAL 

EUhu VALUE A ~ cIhTEHEST @Y 1978 IhCCPE CLASS 4-10 

~(~4.2DERIVATiCh CF tvUMBkiH OF HETbHhS wITt- STATE-LCCAL 

dbhD IhIEkEST Ah0 MLAN APUUNT TC IMPUTED TC 

SELECTED F~ETUF~W iy7a u-11 

4.5.1 FICA TAX AN0 SE TAX FROM 1976 P.L. ThRb 1981 

Pi?GPCSED LAW 4 - 1+3 

CHAPTEH 5. 

5.3.1 SU@PRCGHAMS Ah0 CONTROL STREAP 

ELEPEhTS iN PkASE I. 

5.4.1 SuBPRCGnAMS AN0 CONTROL STREAP 

EI.EHEhTS IN PhASE XI, 5-5 

5.5.1 SUBPRbGHAMS AM CONTROL STREAM 

ELEYENUTS IN Ph4SE 111, 5-7 

5.6.1 OTHER SUtIPffOGfiAMS AND COhfRUL STR�AP 

ELEMEhTS IN TbE TAX MGDEL PRGGRAP FILE. 5-8 

CHAPTEG 6. 

0.2m1 GEhtRAL LOGIC SvtITCHES b-5 

0.2.2 PRINT CONTRCL SlulTCHES FGR TABLE 1 6-10 

0.2.3 PHIhT CbhTROL SlvITChES FGR TA8LE 12 6-14 

0.2.4 PRINT CONTROL SPtITCnE8 FGR TABL� 6 6-1t 

6.2.5 

6.2.6 

PRIkT CGNTPOL 8hITCHES FOR TAELE 7 

PERCEtUTAGE CHANGE IN TAX LIABILITY EREbKPGINTS 

6-17 

6-19 

0.2.7 

0.2.8 

AaSQLUTE CHANGE IN TAX LIABILITY 8REAKPOINT3 

EFFECTIVE TAX RATE BREAKPOINTS 

6.2 1 

6-ZZ 

0.2.9 AOJUSTEO GROSS INCOME CLA33 BAEAKPCIbTS 6-24 

6..3,1 VARIGBLk NAMES FOR THE SPLhXt SPLNYp 6-? 1 

AND SPLNZ CAROS 

6.3.2 ROh rVUM6ERS FCR EACH OEOUCtLClv CATEGCRY 6-32 

6.3.,3 COLUPh NUMBERS FOR EACH OEOUCTIOh CARGORY 6-34 

0,3,4 STAtvOBRO PLAN DEDUCTION MATftIX a-30 

0.~3.5 MISCELLANEOUS TAX PARAPET�RS 6-42 

604.1 METhCDS EMPLOYED TO ChANGh ThE MAHGIhAL 6-47 

TAX RATE SCHEDULES 

bm4.2 INCGHE BREAKPOINTS AND MARGI~ALTAX 6-48 

RATES BY SCHEDULE 

6.403 FUNCtIOluS AN0 ThE FURMAT OF OATA 6-52 

ENTRY 

a.q.4 ThE TAX PARAMETER Ah0 TAX GATE DATA 6-56 

CAR08 Ah0 Th� CUNDITIUN FGR THEIR 

IkCLUSIQN IF( THls INPUT DATA OECK 

CHAPTEk 8. 

8.6.1 PR�-SET CPTIClvS FOR THE C1UROE.N TABLE CUTPOI 8-19 

CHAPTER 9. 
THtASlrRY FEKSUNAL IhDI\IIDCIAL IhCCbE TAX PCCEL. 27 JLh 78 '4 

9.U.U TAX MLDtL OIAGhCSTIC MESSAGtS 9-2 

CHAPTEk 10. 

1u.O.O GLOSSARY GF VARIAt3Lt NAPES 19-2 
CHAPTEG 3. 

3.1.1 GRAPW OF PHI(%) 3-6 

CHAPTER 5. 

5.tl.l A hYPGThETICAL 8LGCK UF PACKED OAlA 

5.C.1 CHIGIhAL ARHAY Cf RtSuLTt 

S.C.2 EXTErvGEO ARi?AY LF r7ESuLT.S 

SmO.1 IL3ANK CVEWLAY OF XQT75 

5.0.2 OBAhrC CVEGLAY OF xQT7S 

CHAPTER 6. 

b.1.1 DATA CARD INPUT FOHMAT 6-1 

6.1.2 GENERAL STRUCTURE OF AN INPUT DECK b-Z 

6.2.1 A GEhUfRAL QAMPCE OATA CAR0 FOUMAT 6-3 

b.2.2 GENERAL LOGIC SWITCHES CARO FORPAT 6-4 

O.Z,f TAeLE 1 PRINT CONTROL SWITCH FORMAT 6-9 

4.2.4 TABLE 3 PRINT CONTROL SkITCH FORPAT 6- t3 

4.2.5 TAeLE 6 PRINT CONTROL SNITCh FOHMAT 6-15 

0.2.6 TABLE 1 STUB CHANGE CARD FORMAT 6-20 

6.2.7 TABLE 7 STUB CHANGE CARO FORMAT 6-a3 

6.2.8 AGI CLA8S BREAKPOINT CAHO FORMAT 6-25 

4.2.9 STCAE TAX flgDEL RESULTS CARD3 6-36 

6e2.10 GECK COkSTRUCTION FUR PART 1 INPUT CAROS 6-27 

4.2.11 INPUT CARD DECK FOR PART 1 6-28 

bo301 TITLE CARD FORMAT 6-29 

6.3.2 THE $CHANGE CARD FORMAT 6-30 

6.3.13 THE SPLNX, SPLNZ CARD FGRMAT 6-3 1 

6,304 DEDUCTION MATRIX CONQTRUCfION 6-32 

6,3.5 ANY ROk IN THE SUBMATRIX 4-34 

6*3,6 THE SPLNY CARD kITH OEOUCTION CHAtVGES 6-37 

6,j.t THE SPLNY CARD kITH GfNkRATED DEDUCTIC~N CHANGES 6-39 

e.4.8 THE SPLNY CARD kITH DEDUCTfQlrtr EXEPPTLGN 6-40 

AND ElrEMPTION CREOIf CHANGES 

60~z.9 THE SPLNY CARD WITH D�OUCTIONt EXEMPTION 6-4 1 

EXEMPTION CREDIT AND MI3CELL~NEOU3TAX 

PARAMETER CHANGES 

6.4.1 

6.4.2 DATA CARDS FOH FLAT RATE CHANGE 6-50 

4.4.,3 DATA CARDS FOR TRUNCATING RATES 6-50 

6.404 DATA CAROS FOR AOJUSTING RATES BY 6-5 1 

PERCENTAGE POINTS 

b.4.5 OATA CARDS FOH ADJUSTING RATES BY 4-51 

A PERCENTAGE FACTOR 

6.4.6 OATA CARDS FOR HEPLACING A HATE SChEDULE 6-52 

IN ITS �NTIRETY 

6.4.7 DATA CAHOS FOR MOOIFYING RATES BY IFr3~RTIUN, 4-54 

ThE SRATE8 CARD FORMAT 6-45 
TREASIJGY PERSONAL IlrtDIVIOUAL INCOME TAX MC7OELa 27 JlIN 78 -6 

DELETIONt AND MGDIFYING 

6w4.8 EXAMPLE OATA CARDS FOR STACKING METkGDS 4-55 

AND OPTI~NS 

6.4.9 OECK COhSTRIJCTICN FOR TAX PARAMETER AND TAX RATE 6=57 

INPUT CARDS 1 ba4.10 IFiPUT CARD DECK FOR PARTS 2 AND 3 6-60 

basal CONTRCL STREAM INSTRUCTIONS FOR A TAX MODEL 61.62 

RUN SbBMITTED FROM CARDS 

6.5.2 THE MINIMUM CCNTROL STREAM INSTRUCTXCNS FOR 6-63 

FCR A TAX MGOEL RUN SU8MfTTED FROM CARDS 

CHAPTER 7. 

7.2.1 PART 1 INPUT PARAMETER OUTPUT AND TbE PLAN X 7-2 

TITLE CARD 

7.2.2 PLAN Y TITLE CAR0 AND ThE PLAN Y OECUCTION 71.4 

MATRIX OUTPUT 

1.2.3 GTH'ER TAX PARAMETER OUTPUT? EXCEPT TkE TAX 7-6 

SChEDLrLES 

7.2.4 TAX SCHEDULES OUTPUT 7-8 

7.3.1 INTERMEDIATE OUTPUT 7-1 1 

7.4.1 TITLE PAGE 7-1,: 

7.4.2 TABLE 1, SELECTED PAGES 7-10 

7.4.3 TABLE LA 7-19 

7.4.4 TABLE 2, SELECTED PAGES 7-24 

7.4.5 TABLE 3 7-28 

7.4.6 TA8LE 41 SELECTED PAGE3 7-30 

7.4.7 TABLE s 7-31 

7.4.8 TABLE 6t SELECTED PAGES 7-36 

7.4.9 TABLE 71 SELECTED PAGES 7-42 

7.~1.10 TA8LE 7At SELECTED PAGES 7-44 

7.4.11 TAi3LE 18 7-U8 

CHAPTER 11, 

11.1.1 HYPOTHETICAL CASE 11-5 

1laS.l EXAMPLE CGVER PAGE ll=15 
TREASCAY PERSONAL INOIVID~~AL INCOCE TAX MODEL. a7 SUN 78 1-1 

1. AN INTRGDUCTION TO THE INCGME TAX SIMULATION MODEL. 

1.1. FEDERkL INCOME TAX, 

THE FEDERAL INDIVIDUAL INCOME TAX IS HIGHLY CGMPLEX kITH MANY 

INTERACTING VARIABLES. THIS MAKES ASSESSMEhT 'CF THE EFFECT8 OF 

PHOPGSED CHAkGEY RATHER DIFFICULT* FGR EXAPPLE, IN COkhECTlON 

hITH A PAHTICULAR PROPCSED CHANGE IN ThE TAX LAW, IT IS IMPERATIVE 

TO KNOW HQk THE CHANGE IS LIK�LY TO AFFECT THE DISTRI8UfION OF 

INCOME AFTER TAX, EFFICIENTLY THE CHANGE V~ILL OPERATE IN 

ACHLEVING ITS OBJECTIVE, WHAT EFFECT TW� CHAhGE 13 LIKELY TO HAVE 

ON PRIVATE ECONOMIC OECXSLONS AND kHAT THESE EFFECTS IMPLY AS TU 

THE LEVEL AN0 COMPOSITICN OF GNPI 

THE AlrALY8IS OF ThE YIELO OF STRUCTURAL CHARACTERISTICS CF MOST 

TAXES HAS BEEN t3ASED CN �STIHATEO RELATIOIUS~IPSAMONG CHANGES IN 

ECOI~GFIC AGGREGATESi SUCH AS GNPt PERSOPIAL INCCMEt TOTAL 

CUN5UPPTIONt AOJUSTED GROSS INCOME, Ah0 CORFCRATE PRCFITS.. 

HOWEVEG, CERTAIN TYPES OF PREDICTLCkS RASED Ch ESTIMATEC RELATIONSHIPS AMONG SUCH ECONOMIC TIME SEHIkS HAVE NCT PROVED VERY 

SUCCESSFUL. IT IS kHfk ONE DESIRES TO ESTIPATE THE EFFECT OF A 

ChANGe IN The TAX 3TRUCTUCiE AS OPPOSEIj TO A FCRECAST UNCER A 

CIJNYTAF~T STRUCTURE THAT DIFFICULTIES ARISE. FIHSTr THEHE ARE NU 

TlHk SERIES AVAILAaLE UPON wHICt4 TO 8ASE A REGRESSION EQUATION 

BECAUSE THE STAUCTUHAL CHANGE BEING INVESTLGATEO USUALLY HAS NO 

HiSfGGY, SECGNOi IF AN ATTEMPT LS MACE TO POdLIST PAST GATA SO 

THAT THEY REFLECT THE PROPOSEL, CHANGE, CNE LISCPLLY FINOS ThAT ThlS 

IS IMPCSSIBLE DUE TO THE COMPLEXITY OF THE INTERAELATIOhS AMONG 

ThE INCOME AN0 DEDUCTION VARIA6LES OF THE IhGCWE TAX SYSTER. 

AS AN ILLUSTRATLOh !OF THIS COMPLEX INTERRELATDCN CONSIDER AN 

INCOME TAX SIMPLIFICATION AND REFGRM MEASUAt CHERE IT PAS BEEN 

PROPOSE0 THAT THE LAW BE CHANGE0 FOR JOINT RETURNS AS FGLLCWS 

(AI LNCREASE ThE FLAT STANDARD DEDUC'TDCN FROM S3rZ00 

PO S3r8001 

(8) IMPOSE A FLOOR EQUAL TO 5 PERCENT OF AGI ION ITEMIZED OEOUCTIaN$, AN0 

(Cl ELIMINATE GASOLINE TAXES.AS AN ALLOWABLE 

O�DUC T ION. BEFORE PRUCEEDING WITH OUR EXAMPLE, LET US ESTABLISH THE FOLLUHING 

AdBREVIATIONS: 

so FOR THE STANDARD REDUCTION 

AGI FOR AOJUSTED GROSS mcaMc 
TWEASuRY PERSONAL INDIVIDUAL INCOME TAX MGDEL. 27 Jl!N 78 1-2 

lO(I) FOR THE I-TH ITEMIZED DEDllCTICjN CATEGCRY 

ID FOR TOTAL ITEMIZE0 QEDUCTPONS 

TG FOR GASOLINE TAX �XPENSE 

kITH THESE ABBRE~IATIQNSI WE CAN INITIALLY EXPRESS THE PRESENT TAX 

LAW AS SHOWN BELOW: 

THE SYSTEM OF EQUATIONS, lala1 ThROCGH 1rlsZ1 REPRESENTS THE BASIC 

CALCULATIGNS FOR EACH ITEM INOICATED TC THE LEFT OF ThE EQUALS 

SAGNO THIS 3YSTEfl OF EQUATIONS IS, HOwEVER, IhCCMPLETE BECAUSE 

TH� PRESENT TAX LAW ALLGNS THE TAXPAYER TO CHOOSE THE LARGER OF 

HIS ITEMIZED DEDUCTIONS OR HI3 STANDARD DEDUCTION. INCCRPORATING 

Th13 PROVISICN GF THE PRESENT TAX LAW YIELDS TkE POLLOkIkG 

EQUAfIGh NEEDED TU COMPLETE THE SYSTEM. 

(l.le3) TOTAL OLD, z THE MAXIMUM OF IO OR S6 

TURNING NOW TO THE HVFOTHETICAL SIMP~IFICATIOhAh0 REFORP PROPOSAL 

OtSCRIeED EARLIER, THE FIRST PROVISION, (A) CAN e� REPRESENTED BY 

WDIFYING EQUATION 1.1.1 AS SHOWN BELCJlU: 

(1.1.41 80 = S3r800 

PODIFYING EQUATION 1.l.Zr WE CAN INCbRPCRATE PRUVI3ICN (9) ANC (C) 

AS 

FROM ThE AGGREGATE DATA IT MAY BE POSSIBLE TO DERIVE A REASOIUAGLE 

ESTIMATE OF EACH OF THESE CHANGES IN 13CLATIGh BUT ESTIPATING 

THEIR COM~INEDEFFECT IS A PROBLEM OF MUCH GREATER DIFFICULTY. 

SINCE THE JOINT OISTRIBUTION OF GASaLIhE TAXES AND OTHER XTEWIZEO 

DEDUCTIONS BY AOJUSTED GROSS INCOME CLASS CAhkCT BE INFERRED FRUM 

THE AGGREGATE DATA CONTAINED IN THE "$TATISTICS CF IhGGCE", IT IS 

IMPOSSIBLE TO GET EITbER A GOO0 ESTIMATE OF TPE NUMBER CF 

TAXPAYERS Who kfLL SHITCH FROM ITEMIZATION TO ThE STANOARO 

StDUCTION OR TP� REkENClf CHANGE IkVOLVEO. 

HENLE, IT IS APPAHENT ThAT A MICROANALV3IS IN THE SEkSE UF A STUDY 

OF THE FU~OAPEI~TALINTERACTING PA'RAMETEAS Ah0 OECISICN RULES OF A 

TAX STRUCTURE APPLIED TO INDIVIDUAL TAXPAYEd3 IS NEEOEO. THIS 

TYPE GF ANALYSIS HAS RECIEVEO TREMEND6US IMPETUS IN RECENT YEARS 

FROM THE DEVELCPMENT GF HIGH SPEED COMPUTING EQUIPMENT Ah0 IS 
I * 

TREASURY PERSONAL IhOIVIDUAL INCOME TAX MCIDEL, 27 JUN 78 1q3 

OFTEN REFERRED TO AS SIMULATION, 

THE OFFICE OF TAX AhALYSISr OFFICE OF THE SECRETARY CF THE 

THEASURY HAS OEVELGPED A SIMULATION OF THE IhCIVIDUAL IhCOME TAX 

USING THE APPROACH GUTL NED ABOVE, THE ESSENTIAL CHARACTERISTICS 

OF THIS SIMULATlCN ARE i HE REPRESENTATICN GF A LARGE NUM@ER OF 

MICRO-COMPONENTS (TAXPAYING UNITS) By A PRCaAbILITY SAMPLE Ah0 Th� 

USE OF hI6H SPEED COMPUTIlvG EQUIPMENT FOR EACh MANIPULATION GF ThE 

SAMPLE REQUIRED BY ALTERNATIVL TAX FUNCTIONS AB0 PARAMETERS, THE 

PhOtiABILITY SAMPLE ALLOnS THE RESULTS CC3TAIhEC FROM ThE SICULATICh 

TU bE kEIGhTEU TO REPRESE~TTHE UIUIVERSE UF TAXPAYERS, 

FROM A HESEARCH POINT OF VIEhr THIS SIMULATICh hAS PRGVEO OF GREAT 

IMPURTANCE HECAUSE 1.1 HAS INCREASED TPE RAhGE AND SCCPE CF 

FEASIBLE PREDICTIONS, IT Thus MAKES PGSSIBLE PGRE EXTENSIVE 

TESIIhG OF THE HYPOTHESIS AN0 THEGRIES UrHICH CAN BE EMRCDIEO IN 

THE SIMULATION, FROM A POLICY POINT OF VIEhr SIMULATIOh WAS 

ESSWTIAL eEcAbsE PGLICYMAKERS IN THE TAX AMP USUALLY ~~EQUIRE 

PkEuICTIOhS ABOUT THE CCMBINEO EFFECT GF MAhY INTERACTIhG CHANGES, 

THE TREASURY'S SIMULATION OF THE INDIVIDUAL IhCOPE TAX IS 

ACCOMPLISHED BY MEANS OF A SIMULATION MGDEL, ThIS MOOEL CONSISTS 

OF THREE MAJOR CO$PONEhTS: A DATA FILE QF INDIVICUAL INCCME TAX 

RETURNS, A $ET GF IhPUf PARAMETERS, AND A CCP"FC;TER PROGRAM, 

THE DATA FILE CURREMLY IFC U3E REPRESENTS IhCXVIDUALS WHO FILED 

FOR ThE CALENDAR YEAR 197s AN0 13 A STRbTIFIEC RANDOM SAPPLE OF 

50,000 INCOME TAX RETURIvS SELECTED FRQK THE LPRGER SAMPLE OF UVER 

~ZI)~,OOORETURNS USED TO PREPARE THE TAWLATIC~S PuaLIaHm IN THE 

STATISTICS OF INCOME, EACH COMPUTATION IN THE SIMULATICN IS 8ASEO 

GFC TH13 DATA AND I3 WEIGHTED TO YEILD RESULTS THAT ARE 

R~PRESENTATIVEGF THE POPULATION FILING RETURhS IN THE YEAR THE 

SAMPLE WAS SELECTED, CHAPTER 2 OF THIS DUCUPEhTATIOh PRCVIDES A 

D~SCRIPTIQNOF THE DATA IN THIS SAMPLE, 

IT ShCULO BE APPARENT TBAT THE RESULTS CF TPE SLNULATICh ARE BASED 

ON ThE EXOGENOUSLY GIVEN LEVEL Ah0 OISTRIBUTICh CF INCGHE AN0 

DEDUCTIONS FOR THE CALEkOAR YEAR 1975 AS PORTliAYED Ih THE DATA 

FILk. THE TREASURY, HOkEVER, ALGbG WITP HOSTiCThER STOCENTS OF 

TAXATICN AN0 FISCAL POLICYi IS CONSIDERABLY PCRE INTERESTED IN THE 

FUTURE THAN IN THk PAST, WhENEVEA SOME ACTICh IS TAKEN, IT WILL 

AFFECT TFik FUTURE Ah0 ITS APPROPRIATEhESS kILL BE INFLUE~CEO 8y 

WHAT THE TAX SYSTEM AND THE ECONOMY WOULD OTBERwISE BE XING IN 

thE FUTURE. 3ENSI6LE PCLICIES CANhOT E� GEARED TO THE PRESENT FOR 

DOING SO IMPLIES THAT HE EXPECT THE FUTURE TG BE LIKE ThE PRESENT 

AND ThE NEE03 OF ThE FUTURE TO BE ThE SAME A3 THCSE OF THE 
TREASURY PERSONAL INOIVIOUAL INCOME TAX MODEL, 27 JUN 78 1'4 

PRESENT. MORECVERI POLICYMAKING IS A RECURREhT PRGCESS. IN ORDER 

TQ EVALUATE A PARTICULAR POLICY'J PERFCAMANCE CVE.H TIME, IT IS 

DESIRABLE TO HAVE A BENCHMARK THAT WOULD INOICATE HOu TPE POLICY 

WAS INITIALLY EXPECTED TO PERFORM, TO ACCGPPLISH THESE 

GaJECTI\ESt IT fiAS IUECESSARY TO DEVELOP A HETkODCLOGV BY WHICH ThE 

LEVEL ANO DISTRIBUION CF INCUME, DEDUCTIONS, ETC,~ cauLo BE 

EXTHAPCLATED TO REPRESEEfT THE VALUES CiF ThESE ITEMS I& FUTURE 

YEARS, THIS HAS 8E�N OGNE AND TESTED hITH VERY GOO0 RESULTS, THE 

EXTRAPCLATION METHOOOLOGY IS DESCRIBED IN DETAIL IN CHAPTER ~3, 

IN ADO IT ION^ SOME TAX PROPOSALS AkE CONCERNED kITh lhCCME OR 

DEDUCTION ITEMS ThAT ARE NOT PART OF ThE PRESEkT INCCME TAX 

STRUCTURE OR THAT DO NOT APPEAR Oh THE RETURN FOR VARIGCIS REASON3, 

SUM� EXAMPLES ARE SGCIAL SECURITY BENEFITSt IhTERE3T INCCRE FROM 

STATE AN0 LOCAL BONDS, THE EXCESS OF PERCENTAGE OEPLETICN CVER 

COST, INTANGIBLE DRILLIkG EXPENSES, EXCESS ICF OEFRECIATLCN OV�R 

STRAIGkT LINE FUR REAL ESTATEt AN0 THE APPRECIATION CVER BASIS FOR 

GIFTS CF APPRECIATED PROPERTY, IF AEtALYSIS CF TAX PRCIPCSALS 

CONCERNING THESE ITEMS IS To BE UNOERTAKEN BITHIF~THE 

MICRO-ANALYTIC FRAMEkCRK OF OUR MODEL TH�N SOP� PETHCO CF IMPUTING 

MISSING DATA TC IEtDIVIDlrAL RETURNS Ih THE SAMFLE MUST 8E 

DEVELCPED, THIS HAS ALSO BEEN OGhE AND IS ThE SUBJECT CF CHAPTER 

4, 

THE SECOlvD CCMPGNENT OF THE MOOEL, THE SET Cf INPUT PARAMETER3r 

CUNTAIkS RATE SChEDOLES, VALUES FOR THE PERCEEtTAGE STANDARD 

OEDUCTIGN Ah0 THE MINIMUM STANOAAO DEDUCTION, VARLAeLE FLQOGS AlvO 

CEILIkGS FGR OEDUCTIONS, PARAMETER3 INVGLVEQ IN THE TREATMENT OF 

CAP~TAL GAINS, DIVIOENOSI EXEMPTIONS, AkO MAkY OThERS, SCME Of 

THESE PARAMETERS ARE DEFIhEO IN PRESENT LAWi CTHERS ARE NGT, IN 

THIS RESPECT, T~EPARAFETLR SET IS lvai A REFLECTIC~N CF A SPECIFIC 

INClrME TAX BUT RATHkR A GENERALIZED STRUCTUHE SUCh THAT THE 

PHESEhT LAk I9 A PROPER SUBSET, A DOCUCENTATIGN Of THE INPUT 

PARAMETER SET 13 PWVIOED IN CHAPTEH 6, 

ThE LA97 COMPONENT IN ThE TAX MODEL IS THE CGPPUTER PROGRAM, THE 

COMPUTER PROGRAM (DESCRI8EO IN CHCIPTEG 51 CCNSISTS OF TIRE� SETS 

OF IhSTRUCTIOhS, ThE FIRST SET OF INSTRUCTIChS READS ALL OF THE 

TAX PARAM�TERS AN0 �MPLCYS THEM TO OEFIIUE THE TAX FUNCTrCNS 

CONTAIhED IN THk SECOND SET OF INSTRUCTIONSe THE SECOlvC SET UF 

INSTRUCTIONS SECUENTIALLY READS ThE DATA FILE CF INCCME TAX 

RETURNS Ah0 CALCULATES A SERIES OF OUTPUT VALLES FOR EACh RETURN, 

THESE VALUES ARE AGGREGATED AND RETAIb4EQ FOR THE THIRO 3ET CF 

INSTRUCTIONS WHICh PRINTS THE VALUES Ih TABULAR FORP. EACH TABLE 

ThAT MAY RE PHOOUCED 8Y ThE LAST SET OF INSTRLCTIONS IS CISCUSSEO 

Ih CHAPTER 7. 
TREASURY PERSCNAL INDIVIDbAL INCOME TAX MCOEL. 27 JbN 78 1-5 

SPACE CGMPARISCNS OF ThE TA8ULATIChS PRODUCEC EY THE TREASURY'S 

TAX MGCEL kITH THk 'STATISTICS OF INCOIJE' SHGh Ah EXCELLENT 

AGREEMENT, PERCENTAGE COMPARISONS Fak SCURCES OF IhCOPE AND 

AOJUSTUENTS, CREDITS, OEDUCTIONS Ah0 ExEMPTlChSr RETbAkS, TAXABLE 

INCOVE, AGI, Ah0 TAX AFTER CREDIT CLASSIFIED EY AGI CLASS, BY 

SCHEDULE AND BY TYPE CF QEDUCTIUN HAVE BEEN TABULATED Ah0 SHOh AN 

ALCURACY CF PLUS CR HINLS 2 TENThS OF 1 PERCEhT. ThI3 LEADS US TG 

TrE CChCLUSIGh THAT ThE MGDEL GIVES VERY ACCUCiATE ANSwEGS 

REGARDING THE REVkN(lrE Ah0 DISTRIBUTLONAL EFFECTS IjF STAbCTURAL 

CMANGES IN T~ESYSTEM, 

IT SHCULD BE NOTED THAT USE OF ThE MODEL'S ESlIhATES I3 INHERENTLY 

LIMITED BY ThE AVAILABLE INfOHMATICh IN THE DATA FILE Ah0 THAT ON� 

SHOULD BE CAaEFCIL TO OISTINQUISh 6ETkEEh APPLICABILITY CF RUhS 

MAOE FCR THt YEAR IN hHICH THE SAMPLE kAS SELECTED VERSUS LATER 

YtAdS. GIVkN THE REPRESENTATIVENtSS OF THE SAMPLE, THE PREOICT�C 

VALUES CF ThE OEPENOEFtT VARlABLES MUST hOLO UhCER TkO ASSUMPTIONS, 

FIRST, THAT ThE PROPOSAL UNDER AhALYSIS HAS rU0 SIGNiFICAhT 

FkEDBACK �FFECTS ON IMPGRTANT VARIABLES EXOCEKUS TC THE MGDEL 

(THE LEVEL ANU CISTRIBUTIGN OF INCOME) AND SECCND, THAT TAXPAYERS 

LEGALLY CHOOSE UPTICNS THAT MINIMIZE THEIR TAX LIQBILITY, 

CLEARLY, THE. OEGR�E TO hHICH DATA CAN RE ASSClbED EXGGEkGU3 DEPENRs 

ON THE NATURE OF THE PRGPGSAL, E+G,, TAXATLCN GF ALL HEALIZED 

CAPITAL GAM AS ORDINARY INCOME IS MUCH MORE LIKELY Ta HAVE 

FLEDBACK EFFECTS THAN CHANGES IN ThE STANOAGD CEGUCTION. EVEN 

HHEN FEEOBACK IS SUSPECTED, HOkEVERi IGNORIhG IT I3 CFTEh ThE MOST 

LOGICAL STAHTING POINT, 

c 
TREASbRY PERSONAL IkDlVIDUAL INCOME TAX MOOEL. 27 JUN 78 2- 1 

2, A DESCRIPTIGN OF TVE INCOME TAX RETURN SAPPLES. 

THE TREASURY CURREIUTLy MAINTAINS VARIOUS SAMPLES OF INDIVICUAL 

INCUM� TAX RETUGN CATA FRGM WHICH THE USER MAY SELECT TFCSE MOST 

SUITED TO HIS G�SEARCH NEEDS. EACh TAX SAMPLE MAY BE EHPLCYED Ih 

C(jN~EcT10b WITH ThE TAX MODEL TO SIMULATE THE DISTRIBUTIGhAL AND 

RkbEru~E IMPACT Gf TAX LAW CHANGES ANO/OR TG PRCOUCE GENERAL 

STATISTICAL TABLES. THIS IS ACCOWPLISHEO BY SPECIFYING ThE 

DESIRED TAX SAVPCE AND ey PROVIDIIVG THE TAX MCCEL NITH INPUT CWDQ 

THAI SPECIFY THE CHARACTERISTICS ljF THE ALTEAhATIVE TAX PLAN AND 

TRE OESIRED TABULATIONS (SEE CHAPTER 6 AND 7). Ih ADDITION, TH� 

USER MAY DEVELOP HI3 OWN COMPUTER PROGRAM AN0 PRCCESS.THE DATA Ik 

ThE TAX SAMPLE TO PGODUCE THE TABULATION HE REQUIR�S. 

EACH SECTION BELOW I)OCUMENTS THt CURREhTLY ACTIVE TAX §AHPLES 8Y 

PROVIDING A SHOAT OESCRIPTION OF TH� TAX SAPPLEI THE SAMPLE COUNTS 

AND hEIGHfS, A QPkCfFICATION OF THE DATA RECCRO AN0 REFERENCES TG 

OTnkR AVAILAELE IhFCRMATION OF A MORE OETAILEC NATURE, 
-- 

c I 

TREASURY PERSONAL IhOIVIOUAL INCOME TAX MGOEL. 27 JUN 78 2-2 

2.2. 1975 INCOME TAX RETURN 1/2 SAMPLE. 

THE 1975 INDIVIDUAL INCOME TAX RETURN SAMPLE CONSISTS OF 50,000 

FEO�GAt IFtCOPE TAX RETURNS SUBSAMPLE0 BY THE TREASURY FGGM THE 

SrATISTICS OF INCOME SAMPLE OF OVtR 206~000WRMS 1040 AIvO 1040A 

FILED ItU THE CALENDAR YEAH 1976 FOR THE 1975 CALEhDAR YEAR TAX 

LIAtlILITY, THE IhFGRMATION CUNTAIkEO Ih THIS FILE IkCLUDES THE 

MAJUR ENTRIES ON FORM 1040 AND AUXILIARY SChECQLES. EACh DATA 

RkCORD CONTAINS ALL THE INFORMATLGN NECESSARY FOR THE CGMPUTATION 

OF 1975 TAX LIABILITY, 

THIS SAMPLE CONTAINS IMPUTED ITEMZZEO OEOUCTIChS FOR RETURkS THAT 

TOOK TI.� STAMOAR0 OEDUCTIGN, THEHEFOHE+ THE LSER SHCULC BE 

CARkFuL NhEN TESTING ITEMIZE0 DEOUCTIGNS FGR e PCSITIbE ENTRY 

SlNCE THIS COULG IhTRCOUCE NON-REPCRTEO FIGURES IhTO TNE RESULTS. 

THIS SAMPLE ALSG COhfAIlvS SOCIAL SECURITY DATA ON AGE, RACE, SEA+ 

AND 8EhEFIT STATUS GF THE TAXPAYER AND SPOUSE. THIS fNPCHMATIOh 

WAS APP�NOED VIA A hARO LINK MERGE. 

2.2.2. SAMPLE COUNTS AND WEIGHTS. 

TA8LE 2.2.1 PRESEhTS THE SAMPLE CODES, SAMPLE STRATUFJI Ah0 THE 

NUMtlEk GF RETURhS IF( EACH STRATUM FOR TbE 1975 I~JDIVIOUALINCOMt 

TAX RETURN HALF-SAMPLE. UNLIKE PREVIOUS TAX RETliRN SAMPLES USED 

BY THE OFFICE CF TAX ANALYSISi THIS SAMPLE HAS DIFFERRING kEIGHTS 

FOR EACh RETURN DUE Ta THE SAflPLING METHODOUCGY EMPLGYEU Ilu 

OHAwIhG THE SUBSAMPLE, HOWEVER, Tkk WEIGHTS STILL SUM TC PRCDUCk 

NATlCkAL ESTI~IATES. THE WEIGHTS RAhGE Ilu VALUE FRGM 1.0 TO 5,148. 

ALTHObGH IT 13 POSSIBLE TO PRODUCE SUB-NATLGNAL ESTIFATES BY STATE 

(OR OISTRICTI, THIS IS hOT RECOMMENDED SINCE TbE NUMBER OF RETUI?N$ 

IN THE SAMPLE FOR EACH STAT� (OR OISTRICTI 13 NOT LARGE ENOUGH TO 

IIUSURE RELIABLE ESTIMATES FOR MOST ITEMS, 
TREASURY PERSGNAL INOIVIOUAL INCCHE TAX MGOEL. 27 JUN 78 2-3 

TAeLE 2.2.1: CODES, STRATUM, AND NUHeER OF 

RETURNS FOR THE 1975 IhOIVIOLAL 

INCGME TAX RETURN HALF-SAMPLE 

NON-BUSINES~ AND FARMtSCHEOCLE 

F ONLY) AGIt DEFICIT, OR LSII 

11 UNOER S 10,000 

12 d 1.0r000 UNDER S 1SiOOO 

13 9 1~~0~0 UNOER S a01000

14 S 20r000 UNDER S 50,000 

1s S 50,000 UNDER %lOO,OOO 

16 S100~000UIUDER S200,OOO 

17 S200,000 UNDER SSO0,OOO 

le $2OO,OOO ANO OVER 

19 SS00,OOO AND OVER 

BUSINESS(SChkDbLE C 8 F OR C 

ONLY) AGIt DEFICIT OR LSII 

tl UkOfR S 10,000 

22 S 10,000 UIvOER S 15,000 

22 5 15iOOO UhDER $ 20,000 

24 $ 20,000 UIvDER S 30,000 

25 $ 30r000 UFtDER S 50iOOO 

26 d 50,000 UNO�R SlOOiOOO 

a7 $ ~ O o UNDER ~ ~ o $200~000 ~ 28 %ZOO,OOO UNDER 5500,000 

a9 5200,000 Ah0 OVER 

50 %SOO,Ol)O AND OVER 

TCTAL 

10,631 

5 I a32 

4,557 

1,3,96 1 

3,6306 

1,792 

1 084 (ICNLY TAXABLE] 

149 CClvLV NONITAXABLE) 

1,649 (CNLY TAXABLE)’ 

467 

598 

651 

1,005 

1,1.31 

1,1320 

699 

539 OChLY TAXABLE) 

103 (IChL’f NON-TAXABLE) 

1,126 CChLY TAXABLE) 

so,ooo 

2.2m.3. DATA RECORD SPECIFICATION. 

EVEHY OATA RECORO IN THE TAX SAMPLE REPRESEfvTS ONE IhDIVIDUAL 

IhCUME TAX RETURN Ah0 CONTAINS 200 DATA FIELDS. EACH DATA FIELD 

IS t?EFERENCEO BY A FIELO SEQUENCE NUMBER AN0 STORED luITb1~TH� 

DATA FIELD IS A NUMBER kHICh CORRESPONDS TO TPE ENTRY MAOE Oh A 
TC(EA3URY PERSCNAL INOIVIOIIAL INCOME TAX MOOEL, 27 JON 78 2-U 

FORM 1040 OR AUXILIARY SChEDULE FOR A PRESELECTED ITEM, SINCE 

ELECTRC~IC COMPCtTERS REQUIRf THAT EACh kUM6ER e� CLASSIFIED AS OhE 

OF ThC MOOES--IhTEGER MGOE (I) OR RkAL WOO� (PI-- A MODE SEQQENCE 

NUMtlER 13 OESIRAULE FOR REFERENCE PURPCSES. ThUS, TABLE te2e2 

PRESEhTS THE FIELO SEQUENCE NUBBEG, THE MCOE SEQbENCE NC;PBERo AN0 

A BRIEF DESCRIPTION OF EACb PRC-SELECTEC ITEM FRCM THE INCCME TAX 

RETURh ThAT CORRESPGNOS Tlj THE NUMBER STEREO Ih ThIS FIELD, 

A MORE OETAILEO DESCRIPTION OF THIS TAX SAPPLE IS 4VAILABLE IN THE 

DOCUMEtvT S50t0008 EOP OATA FILE OESCRIPTICN' &Y PETER K, COOK OF 

THE CfFICE OF TAX ANALYSIS, THIS GOCLIPEN1 CGhTAINS TECBNICAL 

SPECIFICATIONSI ?HE CCBES FOR COCED ITEMS, ANC FACSIMILIE8 OF THE 

FtOERAL INCOME TAX FORMS THAT REFtZRENCE THE PRESELECTED ITEMS. 

A BRIEF SUMMARY OF THE SAMPLING METHOCCLCGY EPfLGYEO aY ThE OFFICE 

OF TAX ANALYSIS IS PRESENTED IN APPENOIX A 1CF THIS CHAPTER, fH� 

SUMMARY OF THE SAMPLING METHODOLOGY WAS COF(PILE0 FROM ThE 

FCLLO~ICJC WORKING PAPERS ay RALPH e emioL je: 

'SAPPLING ASPECTS OF THE TAX MOOELt' CFFICE IIF TAX ANALYSISt 

MARCH 30, 1973, 

'SELECTION OF Th� TAX PODEL SAMPLE,' CFFICE CF TAX ANALVSISi 

'DRAkING A TAX MOOEL SAMPLE FROM THE 1973 SCI - PART I,' 

NOVEMBER 70 1974, 

'ORANING A TAX MGD�L SAMPLE FROM THE 197.3 SGI - PART 111' 

LlFFICE OF TAX ANALYSI3r JULY 110 1975, 

OFFICE CF TAX ANALYSIS, hOVEMBER 6, 197Sm 
1 1 

2 2 

3 3 

4 4 

5 5 

6 6 

7 7 

8 8 

9 9 

10 10 

11 11 

12 

13 

14 

TREASURY PERSGhAL IhOIVIDUAL INCGME TA,X MODEL, 27 JUY 78 21s 

TA8LE 2oZeZS DATA RECORD SPECIFICATLCh FOR THE 

1975 INUIVIDbAL INCOPE TAX RETURN 

HALF-SAMPLE; UNMAPPED Ah0 UNPACKEO 

I BFI BU8IhES9 OK FAPN INGICATGR 

I BUSIN0 BUSINESS INDICATOR 

I CSAMP COMPUTED SAMPLE CODE 

I CSELI CORRECTED SELECTIOh ITEM CCOE 

I OCIND DI3TRICT.OF COLUMBIA INOICATGR 

I OEPlNC OEPEhDENT NITH UN�ARhEO INCCHE CODE 

I OGROUP GROUP CODE 

I OIST DISTRICT COO� 

1 ELECT PRESIDENTIAL ELECTIOb FUhO CODE 

I FOED FORM OF OEDUCTION CODE 

I FLPO FILING PER100 COO� 

A2 'I FORM FORM OF RETURN CODE 

13 I F4S7Z FORM 4972 CODE 

14 1 HINTX HIGH INCOME NON-TAXABLE RETURN CODE 

15 I IS MARS MARITAL STATUS CODE 

16 I 16 PS4MP PUNCHED SAMPLE CODE 

17 I 17 RESADJ RESIOENCE CREDIT ADJUSTF"ET CCDE 

18 1 18 RECHEV REkENUE SHARING RE-CCDE 

19 I 19 RSHAEk REVENU� SHARING CODE 

20 I 20 SCHCF SCHEGULE C OR F INOICATCR 

21 I 21 $ELI SELECTION ITEM COO� 

22 1 22 STATE STATE CODE 

23 I 23 TAXMOD TAX Mom COOE 

24 IZU TWCF TOTAL hUMBER OF PROPRIETCRSHIP SCHEDULES 

25 I 25 TSAMP TAX MOOEL SAMPLE CODE 

26 I 26 TXeAL TAX BALANCE COO� 

27 I 27 TXST TAX STATUS CODE 

28 I28 RETURN WEIGHT* 

29 I 29 TAXPAYER EXEMPTIONS 1040 6cI 

30 30 AGE EXEWPTIGNS 1040 6E 

31 I31 am0 EXEWPTIONS 1000 6E 

32 I 32 O�PkNOfNT EXEMPTIONS 1040 48 

33 I 33 CHILO AT HOME EXEMPTIONS 1040 NA 

54 1 34 ChILD AhAY FROM HOME EXEMPTJCNS 1040 NA 

35 I 35 TOTAL EXEbfPTIONS 1040 7 

NUTES: COMP = CCMPUTEG * = x 100 

WESV = RESERVE0 FOR FUTURE AODITIOhS 

IHPT = IMPUTED ITEM ~m~~i~r~~r~~~r.r=mrr~mmo~m~~~moooom"m~~~~mm~mo~~
TREASURY PERSONAL INDIVIDUAL INCOME TAX MODEL. 

TA8LE Zea*Z: DATA RECORD SPECIFICATLCh 

1975 INDIVIDUAL INCGPE TAX 

HALF-SAMPLE; UNMAPPED bhC 

36 I 36 PUNChED SELECTION AMOUNT 

37 I 37 

38 I 38 

39 I 39 

40 1 40 

41 1 41 

42 I42 

43 I 43 

44 I 44 

45 I 45 

46 I 46 

c****~***CO~FID�NTIAL +** *** 

**********CGNFIDENTIAL********** 

WAGkS, SALARIES? ETC. 

DIVIDENOS, TOTAL BEFCRE EXCLUSItk 

DIVIOENOS, BALANCE IN PGI 

INTEREST INCOME 

TOTAL STATUTORY AOJUSTM�NTS 

+- ADJlrSTED GROSS INCOME OR 

DEFICIT 

INCGME TAX @EFORE CREOITS 

PERSONAL EXEMPTION CRECIT 

(UNCORECTEDI 

47 I 47 INCOHE TAX AFTER CREDITS 

27 JUN 78 

FUR THE 

RETURN 

LNPACKED 

1040 9 

1040 10A 

1040 lot 

1040 11 

1040 14 

1040 1s 

1040 16A 

1040 168 

1040 16C 

1040 a0 

1040 21A 

1040 2li3 

1040 a1c 

1040 

1040 a3 

1040 25 

1040 26 

1040 28 

1040 298 

48 I 48 

49 I 49 

SO I 50 

51 I Si 

52 I 52 

53 I 53 

54 I54 

55 1. 55 

56 I56 

57 1 57 

58 I 58 

59 I 59 

TOTAL TAX LIABILITY 

INCOME TAX ~STHH�LD 

197s ESTIHATEO TAX PAYVENTS 

EARNED INCOHE CREDIT 

(UNCOHR�CTEO) 

AMQUNT PAID HITH FORM 4868 

TAX DUE AT TIME OF FILLING 

OVERPAYMENT, REFUND 

OVERPAYHENT? CREDIT TO 1976 

ESTIMATED TAX 

TAX PA10 kITH RETURN 

+- BUSINESS INCOME OR LOSS 

CAPITAL GAIlvS DISTRIBUTION* 

+- 8UPPLEMEhTAL SCHEDULE? NET GALh 1040 130 

OR IvET LOSS 

60 I60 +* PENSIOhSt RENTS, E1C.r INCOVE 1040 

CR LOSS 

61 I 61 FCILLY TAXABLE PENSION8 AN0 1040 ,118 

ANNUITIES 

b2 I 62 t- FARM INCOME OR LOSS 1040 

63 I 63 STATE INCOME TAX REFUIvDS 1040 

64 I 64 ALIPONY 1u40 ,311 

NOTES: COMP :CCMPUTED * IKLUDED IN FIELDS i23 S it6 

RESV = RESkRVED FOR FUTURE ADOITIONS 

IMPT 3 IMPUTED ITEM 
TREASURY PERSONAL INOIVIOUAL INCOME TAX MCDEL, 27 3UN 78 2-7 

TABLE t.Z.Zt DATA RECORO SPECIFICATICk FOR ThE 

1975 INDIVIDUAL INCOME TAX RETURh 

HALF-SAMPLE; UhMAPPED AkD UNPACKED 

6S I 65 +- GThER INCOHE OR LOSS 1040 435 

66 

67 

I 66 ADJUSTMENTS TO INCOME, SICK PAY 

I 67 AOJUSTMENTS TO INCOME, MOVING 

1040 

1038 

I!? 

40 

EXPENSES 

68 f 68 ADJUSTMENTS TO INCOME, EMPLOYEE 1040 139 

BUSIN�SS EXPENSES 

69 I 69 ADJUSTMENTS TO INCQME, PAYM�NTS 1040 4QA 

TO A KEOGH RETIREHENT PLAN 

70 I 70 ADJUSTMENTS 10 INCOME, PAYMENTS 1040 408 

fa A RETIREMENT PLAN 

71 I 71 FORFEITED INTEREST PENALTY 1040 41 

72 I 72 TOTAL DEDUCTIONS 1040 44 

73 I 73 EXE~WIONSAMQUkT 1040 46 

74 I 74 TAXARLE INCGME 1040 47 

75 I. 75 CREDITS, RETIREMENT INCOME 1040 U8 

76 I. 76 CREDITS, INVESTMENT 1040 49 

77 1 77 CREDITS, FOREIGN TAX 1040 50 

78 I 78 CREDITS, COhTRIBUTIONS TO 1040 si 

CAhDIDATES 

79 I 79 CREDITS, kORK IluCENTIVE 1040 52 

80 I. 80 CREDITS, PURCHASE OF NEW 1040 53 

RESIDENCE 

81 I 81 CREDITS, QTkER TAX CREDITS 1040 luA 

82 I 62 OTHER TAXES, RECOMPUTED PRICR VE4R 1049 55 

INVESTM�NT TAX CREDIT 

83 I 03 OTHER TAXES, RECOMPUTED PRIGR YEAR 1040 56 

WIN CREDIT 

84 I 84 G7hER TAXES, MINIMUM TAX 1040 57 

d5 I BS OTkER TAXES, TAX tlN PREMATURE 1040 5% 

OISTRIBUlIOhS (FORM 53291 

86 I 86 OTH�R TAXES, SELF-EMPLOYMENT TAX 1040 59 

87 I 87 OThER TAXES, SOCIAL SECURITY TAX 1040 60861 

ON TIPS, UkCOLLECTED TAX 

68 I 88 CTHkR TAXES, EXCESS CONTRfBUTIGhS 1040 62 

TO AN ZNOIVIDUAL HETIREMEhT ACCIjUhT 

NOTE3: COHP = COMPUTE0 

RESV f RESERVEO FOR FUTURE ADOITXaNS 

IMP1 = IMPUTE0 ITEM 
L . 

TREASURY PERSCFtAL I&OIVIDUAL INCCIHE TAX HODEL, 27 JUN 78 

TABLE 2,Z.Z: DATA RECORD SPECIFICATLCN FOR THE 

1975 INOIVIDUAL INCCME TAX RETURN 

HALF-SAMPLE; UNMAfPED AND bNPACKED 

89 I 89 CThER TAXES, ALL OTHER TAXES 

90 I 90 OTM�R TAX PAYMENTS, EXCESS FICA 

TAX WIThHELG 

91 I91 OTHER T4X PAYMENTS, CREDIT FOR 

FEDERAL TAX Ob GASQLIhE 

92 I92 CTH�R TAX PAYMENTSr TOTAL OTHER 

PAYMEIYTS 

93 I 93 MEDICAL AND OENTAL EXPENS�S, lit 

INSUHANCE PREMIUMS 

EXPEIvSES, 

(AFTER INCCME LIMIT) 

100 I100 TAXESr STATE AN0 LOCAL INCOME TAX 

101 I101 TAXES, REAL ESTATE 

102 1102 TAXESr STATE AND LOCAL GASOLINE 

103 El03 TAXES, GENERAL SALE8 

194 1104 TAXES, PERSGNAL PROPERTY 

105 I105 TAX�$, TOTAL 

196 1106 INTEREST EXPEhSE, HOME MORTGAGE 

107 I107 INTEREST EXPENSE, TOTAL 

106 I108 CONTRIBUTIONS, CASH 

lU9 1109 CONTflIBUTICNSt OTHER THAN CASH 

110 1110 CONTffIBUTIONS, CARRYOVER FRCM 

PRIGR Y�ARS 

111 I111 CONTRIBUTIOkSt TOTAL 

112 Ill2 NET CASUALTY OR THEFT LGSS 

NCJTE3: COMP = COMPUTED 

RESV :: RESERVED FOR FUTURE ADDITIOtciS 

IMPT :IMPUTED ITEM 

94 I 94 MEDICAL 

CINk AN0 

9s I 95 MEDICAL 

CINE AN0 

96 I 96 MEDICAL 

BALANCE 

97 I 97 MEDICAL 

MEDICAL 

98 I98 MEDICAL 

CAL AND 

99 I 99 MEOICAL 

AND OENTAL EXPE~SE~IMEOIORUGS 

AN0 OENTAL EXPENSES, MEDIDRUGS IN EXCE33 OF 1% 

AND DENTAL EXPENSES, 

OF INSURANCE PREMIHUMS 

AND DENTAL �XPENSESI TOTAL 

Ah0 DENTAL EXPENSES 

AND OENTAL EXPENSES, MEOIDENTAL IN �ACE99 OF 83% 

AND O�NTAL TOTAL 

1040 &,A, 

1940 64 

1040 65 

1040 67 

A 1 

A t 

A 4 

A S 

A 7 -

A 9 

A 10 

A 11 

A 12 

A t3 

A 14 

A 1s 

A 17 

A 18 

A tO 

A 21A88 

A Zt 

A 22 

A 24 

A 29 

~ ~ ~ m m ~ ~ m - m ~ ~ o ~ ~ m m ~ ~ o o o ~ ~ m ~ o ~ o ~ * o o o ~ ~ ~ m ~ 
TREASURY PERSONAL INDIVIDUAL INCOME TAX MOOEL, 27 31iN 78 2-9 

! 

TABLE 2,ZeZ: DATA RECORD SPECIFICATDGN FOR THE 

1975 INDIVIDUAL INCOME TAX RETURN 

HALF-SAMPLE; UNMAPPED Ah0 CINPACRED 

11: 1113 WI3C. DEDUCTIONS, ALIMONY PAID A 

114 1114 MISC, OEDUCTIONS~ UNION DUES 

115 Ills MISC, REOUCTIQNS~ CHILD AN0 

A 

A 

DEPEkOENT CARE 

116 1116 MISC. OEDUCTIONSr POLITICAL A 

CONTRI8UTlGhS 

118 Ill8 ShaHT-TERM CAPITAL GAINS OR LOSSES 0 

PR�-1970+PCSf-l969 ST CAPITAL 

LOSS CARRYOVERS 

119 Ill9 +- SHORT-TERM GAINS OR LOSSES, NET 0 

ST CAPITAL GAIN AFTER 

CARHYOVERS 

120 I120 t- SHORT-TERM GAINS OR LOSSES, hEf 0 

ST CAPITAL LOSS AFTER 

CARRYOVERS 

121 1121 LONG-TERM GAIRS OR LOSSES, PRE- D 

1970 LONG-TERM CAPITAL LOSS 

CARRYOVERS 

122 1122 LCNG-TERM GAINS OR LOS8E3, POST- O 

1969 LONG-TtRH CAPITAL LOSS 

CARRYOVERS 

123 I123 +- LONG-TERW GAINS OR LOSSES, NET D 

LONG-TERM GAIN AFTER 

CARRYOVERS 

124 1124 +I LONG-TERM GAINS OR LOSSES, NET O 

LGNG-TERM LOS8 AFTER 

CARRYOVERS 

125 112s NET LOSS BEFOGE LIMITATION D 

127 I127 LONG-TERM GAINS FROH IhSTALLPEhT 0 

SALES 

128 1128 ALTkRNATIVE TAX 0 

129 I129 PENSION Ah0 ANNUITIES, INCOME �&A 1.3 

THIS YEAR 

NOTES: COMP = COhPUTEO 

ill Ill7 FISC, DEDLiCTfGN8, TOTAL A 

126 1126 +- NET CAPITAL GAIN aR LOSS O 

RESV = RESERVED FOR FUTbRE ADDITIOhS 

IMP1 0 IMPUTED ITEM 
. 

TREASURY PERSGNAL IBDIVIDUAL INCOME TAX MODEL. 27 JUN 78 2-10 

TAQLE l?*2*2: DATA RECORD SPECIFICATICN FOR THE 

1975 INDIVIDUAL INCOME TAX RETURF( 

WALF-SAMPLE: UNHAPP�D Ah0 LNPACKED 

130 I130 PENSIONS AND ANNUITIES (TAXABLE ELR 1.5 

PORT ION) 

131 I131 t- RENTS, NET INCOME OR NET LOSS E8R 11.2 

132 I132 +- kOYALTIE3, NET INCOPE OR NET EgR 11.2 

LCSS 

133 1133 PARTNERSHIPS, TOTAL INCOME E8R O-E 

134 1134 PARTNERSHIPSr TOTAL LOSS E8R O+E 

135 I135 to PARTNERShIPS, NET INCOME OR hET EBR 111.2 

LOSS 

136 I136 ESTATE OR TRUST, TOTAL INCOME E8R a(+]

137 I137 ESTATE OR TRUST, TOTAL LOSS E8R O(-l

138 1138 +- ESTATE aR TRUST NET INCOME aR E8R 111.2 

NET LOSS 

139 I139 SMALL BUSINfiSS C0RP.r TGTAL INGCPE E8R O(+) 

140 I140 SHALL BUSINESS C0RP.t TOTAL LO39 E&R DW 

141 I141 += SMALL BUSINESS CORPORATIGN NET EBR 111.2 

INCOME OR hEf LOS3 

142 I142 SChEDULE SE NET EARNINGS SE b3 

FROM SELF-ENPLOYMENT 

143 I143 COMPUTATICN OF MIN, TAX, ACCELo 4625 1-A-1 

OEPR. Oh LOh-INCOME REhTAL HOUSING 

144 I144 CGMPUTATLON OF MIN, TAX, ACCEL. 4625 1-A-2 

DEPRe Oh OTHER REAL PRCPERTY 

145 1145 COMPUTATION Of MIN. TAX, ACCEL, 462s 1.8 

OEPR. Oh PERSONAL PROPERTY 

146 I146 COMPUTATION CF MIN, TAX, TOTAL U625 1C-f 

AMCRTIZATICN 

147 I147 CO~PUTATIObOF MIN, TAX, STCCK 4625 1-G 

OPTION3 

148 I148 COMPUTATION OF MIN, TAX? RESERVES 4625 1-H 

FOR BAD DEBTS 

149 1149 COMPUTATION OF MINO TAX, OEPLETLGh 4625 1-1 

150 1150 COMPUTATION Of MIN, TAX, CAPITAL U62S 1-J 

GAIIUS 

NOTES: caw = CCMPUTED 

HCSV 3 RESERVED FOR FUTURE AODXTIONS 

IMPT = IMPUTED ITEM ~ m w * ~ ~ ~ ~ ~ m m ~ ~ ~ ~ m ~ ~ ~ o ~ ~ m o m m o o ~ m ~ ~ 
TREASClfiY PERSOhAL IbOIVIDUAL INCOPE TAX HODEL. 27 JUN 78 2-11 

TABLE 2.2.2: DATA RECORD SPECIFICATLON FOR The 

1975 INDIVIDUAL INCOME TAX RETUffN 

HALF-SAMPLE; UEiMAPPED AN0 UNPACKED 

151 I151 COMPUTATION OF MIN. TA%, TOTAL 4625 2 

ITEMS OF TAX PREFERENCES 

152 1152 COMPUTATION OF MINI TAX, EXCLUSICk 4625 13 

155 I153 COMPUTATION OF MINo TAX, TAX 4625 9 

FROM PREMATURE OfSTRIBUTIGhS (SEI

154 1154 COMPUTATION OF MIN. TAX, TAX 4625 10 

CARRYOVER FROM PRIOR YEARCS1 

155 I155 COMPUTATION OF MIN. TAX, 1975 NET 

OPERATING LOSS CARRYOVER 

4625 14 

156 I156 COPPUTATIOk OF MIN. TAX, MIluIMUP 4625 18 

TAX DEFERRED FROM PRIOR YEARC31 

157 I157 COMPUTATION OF MINI TAX, EXCE38 4625 ZOE 

is8 1158 cowwiwoN aF MIN. TAX, HINIHUM 4625 21 

TAX AFTER ADJUSTM�NTS 

CREDITS 

159 1159 MAX. TAX ON EARNED IkCCMEr EARNED 4726 1 

INCOME 

160 1160 MAX. TAX ON EARNED INCChfE, 0726 Z 

OEDUCTI~NS 

161 1161 MAX. TAX ON EARNED INCOME, EARNED 4726 13 

NET INCOME 

162 1162 MAX. TAX ON EARNED INOCME, TAX 4726 8C 

PREFEREhCE3 OFFSET 

163 1163 MAXI TAX ON EARNED INGCWE, 4726 9 

AOJUSTEO EARNED TAXAELE INCOME 

164 1164 MAX. TAX ON EARNED IhCOMEt MA%fMUF 4726 170R34 

TAX 

165 I165 FORM 4952, INVESTMNT INTEREST,T.CTAL 4952 5 

166 I166 FORM 4952, INVESTMNT INIEREST,bCTbL 4952 4A 

NON-8USINES3 

167 1167 FORM 4952, IFIVESThENT INTEREST^ 4952 20 

INEREST DEouctIarv OISALLG~ED 

168 I168 FORM 4972, SPECIAL LUNP-SUM INCOPE 4972 2CHtC 

4YG.r OROINARY INCOME PORTION 

NOTES: COMP f CGMPUTED 

RE3V = RESERyED FOR FUTURE AD01TIO~S 

IMPT IMPUTE0 ITEM 
TREASURY PERSONAL INDIVIDUAL INCOME TAX MOOEL, 27 JUN 78 2-12 

TABLE 2,t.Z: DATA RECORD SPECIFICATICN FOR THE 

1975 INDIVIDUAL INCCiME TAX RETUftN 

HALF-YAMPLE; QIUMAPPED Ab8 UNPACKED 

lb9 I169 FORM 4972, SPECIAL LWP-SUF, INCOME 4972 136RlC 

AVGer IO-YEAR TOTAL 

170 1170 FORM 4972, SPECIAL LUMP-SUM INCOME 4972 $GRSC 

AVGIi TCTAL TAXAtr)LE AMOUhT 

in 1171 FORM 4972, SPECIAL LUHP-~UM INCOME 4972 7 

AVG., AOJUSTED TOTAL TAXABLE AMOUNT 

172 1172 FORP 4972, SPECIAL Luw-auM INCOPE 4972 

AkGIt TAX Uh OROINARY INCOME 

173 1173 FORM 4972, SPECIAL LUMP-SUM INGOME* 4972 240R26 

AVG., TAX FROM 3PECIAL INCOME 

AVEHAGING 

174 I174 FORM 5405, C03T OF RESIDENCE 5405 4 

175 I175 FORM s405, AOJUSTFLD BASIS 5405 b 

176 I176 FORM 4972, 1974 INVESTVENT INTEREST, 4972 28 

ORDINARY INCOME PORTION 

177 I177 FORM 4972, 1974 INVESTVENT INTEREST, 4972 134 

TOTAL BEFORE EXCLUSIQN 

178 1178 FORM 4972, 1974 INVESTMENT INTEREST, 4972 58 

TOTAL TAXABLE PORTION 

179 I179 TAX MODEL WEIGHT NIA,

180 1180 *********CONFIDENTIAL*********** 

COhFIDENtIAL 

181 1181 *********CONFIDENTIAL********** 

CONFIDENTIAL 

182 I182 ********CGNFIOENTfAL******** 

183 1183 **CCNFIDEkTIAL*** 

184 1184 ***CONFIDENTIAL*** 

la5 I185 *****CONFIDENTIAL****** 

186 1186 *****CO~FIOENTTAL***** 

187 1187 *****COhFIOENTIAL****** 

188 I188 *****CONFIOENTIAL***** 

189 I189 ********CONFIDENTIAL******** 

190 I190 ********CONFIQENTIAL +** **********************~ 

191 1191 ***********CONFIDENTIAL**********a 

**CGNFIOENTIAL** 

NOTES: COMP 0 COMPUTED * = 3AME AS LINE 24 IF NO PART If 

RESV RESERVED FUR FUTURE ADOITIONS 

IMP1 S IMPUTED ITEM ~ ~ ~ ~ O O ~ ~ ~ ~ ~ ~ ~ ~ 
t 

TA6LE 2.2.2: DATA RECORD SPECIFICATICN FOR THE 

1975 INOIVIOUAL INCCME TAX RETURN 

HALF-SAMPLE; UNMAPPED Ah0 CINPACKED 
2.3, 1975 INCOME TAX RETURN 112 SAMPLE: PACKEC 8 MAPPED. 

2.3,l. A 3HOHT OESCRIPTXON. 

ThE 1975 INOIVIGUAL INCCME TAA RETURN HALF SAPPLE IN THE MAPPED 

AND PACKED FORMAT DIFFER3 FROM THE HALF SAMPLE UF SECTLGN 2.2 IN 

TttE FCLLOWING WAYS8 

(A) EACH DATA RECORO IN THE SAMPLE HA3 BEEN 'HAPPED*' 

Ir4PPLNG MEANS THAT THE ORIGINAL SEQUEN�IAG CF THE 

OATA ITEMS NIThIh A RECORD HA3 BEEN REARRANGED TO 

PRODUCE A SEUUENCIIUG THAT FACILITATES FASTER 

PROCESSING BY ThE TAX MOD�L* THE PROCESS OF REARRANGING SPLIT3 THE DATA ITEMS INTO T~OGRCUPS: 

(1) IeASIC VARIABLES' WHICH ARE ABSOLUTELY 

NECESSARY TO THE EXECUTION OF THE TAX CALCULATGR 

AND (2) tOTHER VARIABLES' WHICH ARE NOT PBSCLUTELY 

kECE3SARY Ta THE EXECUTION OF 1HE TAX CALCULATOR, 

THIS SPLIT HILL BE EMPLOYED WHEN ThE ICPRCVCD 

INPUT/OUTPUT RGUTINE 13 AOOEO TO ThE TAX FOGEL 

PROGRAM. 

THE PROCESS OF REARRANGEMENT ALSC LEAVES SPACE FOR 

THE INCLUSION OF CGMPUTEO DATA ITEM3 AN0 IMPUTED 

GATA ITEMS. 

(8) EACH DATA HECORO IN THE S4MPI.E HAS BEEN 'PACKED.' 

PACKING A DATA RECGRO ACCOMPLISHES TkQ TkINGS: 

(1) IT REDUCE3 THE AMOUNT OF PHYSICAL SPACE hEEDEC 

IN STORING THE DATA BY R�TAINhING GNLY NCh-ZERO 

EkTRfES AND THEIR LOCATION IN THE ORIGINAL DATA 

RECORD AND (2) AS A BY-PRODUCT, IT AEDUCES*INPUT 

PROCkSSING TIM� SIFtCE THERE ARE FEWER OATA ITEMS 

TIC INPUT, ThIS MEANS THAT A DATA RECORO CONSISTING 

aF 23U ITEMS WhERE ONE-HALF OF THE ITEPS HAVE 

A ZERO ENTRY, CAFC BE REDUCED TO A NEI* CATA RECORD 

CONSISTING OF 117 Noh-ZERG EIUTRIES AND TbEIR 

LGCATION IF( THE ORIGINAL DATA RECaRD, ALTHOUGH 

ThE ADVANTAGES OF PACKING ARE GBVLCUS, IT INTRODUCES 

A PROGRAMMING CONSTRAINT BECAUSE EACH PACKED DATA 

RECORD MUST BE 'UhPACKEO' TO RECREATE THE ORIGINAL 

OATA RECORD. INCCRPORATED WITHIN THE TAX MGDEL 

PROGRAM IS A SCIBPRGGRAN WHICH ACCOOMPLISkES THE 

FUNCTIUN CF UNPACKING, IF, kCWEVEAi TIE USER 

GESIRES TO EMPLOY h13 OWN PROGRAM kITH ThIS 
TREASURY PERSONAL INOIVIDUAL INCOME TAX MGDEL, 27 JUN 76 

1 

SAhPLE, HE MUST EITHER WRIT� HIS OMN SUBPROGRAM OR 

ACQUIRE A SUBPPROGRAM TO UNPACK ThE DATA RECOROS, 

(C) AS BEFORE, EACH OATA RECORD IN THE SAMPLE WHICH REFLECTS A 

RETURN THAT ELECTED THE STANDARD DEDUCTICh FA9 BEE& 

PROVIDED WITH IMPUTED ITEMIZED OEOUCTLGbSo THEREFCRE, 

TWE USER SHOULD BE CAREFUL WEh TESTING ITEhIZED 

DEOUCTIONS FOR A PGSITlVE ENTRY SINCE TkIS COULD 

IkTRODUCE NONOREPORTED FIGURES INDC HIS RESULTS, 

2,3,2. SAMPLE COUNTS AND WEIGHTS, 

UNLIKE PREVIOUS TAX RETURN SAMPLES USED BY THE OFFICE OF TAX 

ANALYSI3, THIS SAMPLE HA8 DIFFEHRXNG kEIGhT3 FER EACH RETURN DUE 

TO THE SAMPLING METHODOLOGY EMPLOYED IN DRAWIhG TH� SU6SAMPLE. 

HOWEVER' THE WEIGHTS STILL SUM TO PRODUCE NATOCNAL ESTIWATE3r 

4tTHOUGH IT IS POSSIBLE TO PRODUCE SUB-NATDCNAL ESTIVATES 8Y STATE 

(i3R DISTRICT), THIS IS hOT RECOMHEhoEO 3INCE ThE NUMBER fF RETURNS 

IN THE SAMPLE FOR EACH STATE (OR OISTRICT~ IS FiOT LARGE ENOUGH TO 

IhSURf RELIABLE ESTIMATES FOR MOST ITEMS, 

2,3012, DATA RECORD SPECIFICATION, 

EVERY DATA RECORD IN THE TAX SAMPLE REPRESENTS OkE INOIVIDUAL 

INCOVE TAX RETURN Ah0 CCNTAINS 234 DATA ITEM3 (ThE URIGI~AL200 

OATA ITEMS PLUS 34 NEkr ITEMS), EACH DATA FIELD IS REFERENCE0 BY A 

FIELD SEQUENCE NUMBER AND STORED hITHIN TH� OATA FIELD IS A NUM~ER 

htnICH CORRESPONOS TO AN ENTRY MAOE ON A FQRP 1040 OR AUXILIARY 

SCHEDULE, A CCMPUTED VARIABLE FROM THE TAX MCOEL PROGRAP, OR AN 

IMPUTED VARIAL)LE EXOGEWUS TO THE TAX MGDEL, THE FIRST 74 FIELD 

SEQUENCE NUMBERS IN TABLE 2,3,1 ffEFERENCE THE '8A31C VARIABLES' 

AN0 THE REMAINNIhG FIELD SEQUENCE NUMBERS REFERENCE THE 'OTHER 

VARIABLES.' 

SINCE ELECTRCNIC COMPUTERS REQUIRE THAT EACW kUHBER BE CLASSIFIED 

AS ONE OF TWO MbOESm-INTEGER MODE(I) OR REAL PCGE(R)--ThE ARRAY 

NAMt Ah0 SU6SCRIPT NUM8ER �MPLQYED BY THE TAX HUDEL FOR EACH DATA 

ITEW APPEARS IN TABLE 2.)3,1, 

Two ~ElrCGLLINN HEADINGS APPEAR AT THE RIGHT HPhO SIDE CF TABLE 

2.3.1 tiNOER 'REFERENCE', UNDER THE COLUMN hEbOING 'UNPAPPEO 

SGUHCE' APPEARS THE FIELD SEQUENCE NUMBER Ih TABLE 2.2.2 THAT 

CORRESPONOS TO THIS ITEP, THE TEAMS 'CGMP, RESV, Ah0 IPPT' MAY 

ALSO BE FOUND UNDER THE HEADING 'UNMAPPED SGURCE' Ah0 AGE 

EXPLAINED AT THE BOTTOM OF TAeLE 2.1.1, BELOk THE CCLUPh HEADING 

'EQUIVALENT' IS THE SECONOARV NAME THAT IS ASSCCIATEC NITh EACH 
TREASURY PERSOFtAL INDIVIDUAL INCOPE TAX MODEL, 27 JUN 78 2-lt 

'BASIC VARIABLE' IN ThE TAX MODEL PROGRAM, 

2.3.4, OTHER OCCUHENT4TION, 

APPENDIX E OF ThIS CHAPTER PRESENTS THE MAJGR AMMALIES THAT MERE 

ENCOUNTERED ON THE 1975 TAX MODEL SAMPLE AN0 CCW THESE AFIOMALIES 

HERE EDITED IN CROER TO PRODUCE A CLEAN SAMPLE. 

APPENOIX C OF THf3 CHAPTER PRESENTS A COMPAAISION OF THE 1975 TAX 

MOOtL RESULTS AND THE PRELIMINARY 1975 STATISTICS OF INCCME, 
TREASURY PERSONAL IIvOIVIDUAL INCGME 'TAX MOQEL. 27 JUN 78 2-1 7 

TABLE 2.3.1: DATA RECORD SPECIFICATIGh FOR THE 1975 

INDIVIDUAL INCOME TAX RETLAN 

HALF-SAMPCE; HAPPED AND PhCKED 

~ w m ~ * ~ ~ ~ ~ * ~ ~ ~ ~ ~ ~ ~ w ~ o ~ ~ ~ m ~ m m - = m ~ - o o m m ~ ~ w 

FIELD ARHAY ---REFEREhCE---

SEQ NAME OATA IlEM OESCRIPTION LIYMAPPED EQUIVNUS & NO SOURCE ALENT mmm~oow~m~m~~w~-~mw~~o~~wm~-m~mw~~~wow~~m~~mm

L3 

1 P 1 CUhSECUTIVE RETURN NUMeER COMP REThU 

2 P 2 MAGS MARITAL STATUS CODE 1s MARS 

3 P 3 FRED FORM aF OEOUCTION CCDE 10 IOEOX 

4 M 4 CSAMP COMPUTED SAMPLE caoc 83 PCODE 

f M 5 PRESENT LAW AGI CLASS CODE caw JV 

6 M 6 F4972 FORM 4972 CODE 13 F4972 

7 C 1 TAXPAYEH EXEMPTIONS 29 TXPVE 

8 0 2 AGE EXEMPTIONS 130 hGEOE 

9 0 3 BLIND EXEMPTIONS 31 0LNOE 

10 0 4 DEPENDEFlT EXEMPTIONS 132 DEPNE 

A1 0 S CHILD AT HOME EXEMPTIONS $33 CAHE 

12 D 6,CHILD AhAY FROM HOME EXEMPTIONS b34 CAF HE 

0 7 WAGES, SALARIES, ETC. 839 hAS 

A4 0 8 DIVIO�NO$r GROSS OIVIOENDS 40 GO 

A5 0 9 OIVID�NO EXCLUSION COMP DEXCL 

16 0 10 DIVIO�hOS, BALANCE IN AGI 41 TAX0 

A7 0 11 ALL INCCME CTHER THAN DIVIOENDS Ah0 COMP RESID 

CAPITAL GAINS IN At1 

18 0 12 ADJUSTMENTS TO INCOME, SICK PAY 66 SICKPY 

19 0 13 TOTAL STATUTORY ADJUSTMENTS 43 bDJUST 

21 0 I5 INCGME TAX BEFORE CREDITS 45 TAX0 

Zt 0 16 PERSONAL EXEMPTION CR�DIT 46 LHCRX 

23 0 

24 o 

17 CREDITS# TOTAL

ia TENATIVE TAX AFTER CAE0113 

COMP 

COMP 

TXCRD 

TTAXA 

25 0 

26 0 

19 OTH�R TAXES, MINIMUM TAX 

20 OTH�R TAXES, SUBTOTAL EXCLUDING 

84 

COMP 

PIIUTAX 

~CTHERT 

MINIMUM TAX 

27 0 21 INCOME TAX AFTER CREOITS 47 TAXAX 

28 0 22 EARNED INCOME CREOIT 51 EICX 

29 0 23 TOTAL DEOUCTIaNS 72 OX 

30 0 24 EXEffPTIOffS AMOUNT 73 EXEM 

31 D 25 TAXABLE INCCHE 74 TINCX 

32 0 24 TAX SAVING3 FROM INCOME AVERAGING CUMP AVESAV 

33 0 27 CAPITAL GAINS DISTRIBUTLON 58 CGD50 

LO D 14 +- kDJUSTE0 GROSS IkCQME OR DEFICIT 44 AGIX 

NOTES: COMP f COMPUTED 

RESV :: RESERVED FOR FUTURE ADOITIONS 

IMPT = IMPUTED ITEM w m m o ~ ~ ~ ~ o ~ ~ ~ ~ w ~ ~ m ~ ~ ~ ~ m ~ m m ~ ~ o o ~ ~ ~ ~ ~ 
34 0 28 FULLY TAXABLE PENSIONS ANI; ANNUITIES 

35 0 29 PENSIONS AN0 ANNUITIES, TAXABLE 

PORT ION 

34 D 30 MEOICAL AND DENTAL EXPE'NSES, 

BALANCE OF INSURANCE PREMIMlJMS 

37 D 31 CONTRIBUTIO~S~TOTAL 

38 0 32 INTEREST.EXPENSE, HOME MGRTGAGE 

39 0 35 IEtTkREST EXPEhSEi OTH�R 

40 D 3U INVESTHENT INCOME 

41 0 35 PERCENT Nab-BUSINESS 

42 0 36 INTEREST EXPEkSE, TOTAL 

43 D 37 TAXES? TOTAL 

'44 0 38 MEDICAL Ah0 DENTAL EXPENSES, 

P�OICINE AND ORUGS 

45 C 39 MEDICAL AND OENTAL EXPENSES, 

MEDICAL AND D�NTAL 

46 D 40 MEDICAL AN0 DENTAL EXPENSES, FULL 

MEDICAL INSURANCE PREMIUMS 

47 0 41 WI3Co OEDUCTIONS, ALIWhY PAID 

48 0 42 MISCo DEOUCTIONS, CHILD AND 

OEPENOENT CARE 

49 0 43 VISC, OEDUCTIONS, TOTAL 

50 0 UU NET CASUALTY OR THEFT LOSS 

51 0 45 t-SHORT-TERH GAINS OR LOSSES, NET 

ST GAIN OR LOSS BEFOR� CARAYOVER 

52 D 46 SHORT-TERM GAINS OR LOSSES, PHE61 FTPEN 

130 PTPEN 

96 alw IP 

ill ON1 

1Ob HPIE 

CQMP CIE 

COMP IhVY 

COMP PNB 

107 ChZ 

10s Oh3 

94 Oh4 

COMP Oh5 

COMP DN6 

133 ALIMNY 

115 CHILDC 

117 ON7 

112 ON8 

COMP STGL 

COMP P7OSTC 

1970 SHORT-TERM CAPITAL Loss CARRVCVER 

53 0 47 SHORT-TERM GAINS OR LOSSESI POST- COMP P69STC 

1969 SHORT-TERM CAPITAL LOSS CARRVOVE 

54 D 48 +- SHORT-TERM GAINS OR LOSSES, bET COMP hSTCL 

ST CAPITAL GAIN OR LO38 AFTER CARGY 

55 0 49 LONG-TERM GAINS OR LOSSES, NET LT COMP LTGL 

GAIN OR LOSS BEFORE CARRYOVER 

56 D 50 LONG-TERM GAINS OR LOSSES, PRE-1970 121 P70LTC 

NOTE$: COMP = COMPUTED 

RESV = HESERVEO FOR FUTURE AOOITIChS 

IMPr = IMPUTED ITEM 
. 

THEASlrR\I PERSONAL INOIVIOCiAL INCOHE TAX MODEL, 27 JUN 78 2-19 

TABLE (?d?.1: OATA RECORO SPECIFICATICh FOR ThE 197s 

INOIVIOlrAL INCCME TAX R�TbRh 

HALF-SAMPLE; FAPPED AND PACKED 

LQNG-TERM CAPITAL LOSS CARHYOVER 

s7 D si LONG-TERM GAINS OR LOSSES, POST- 122 P69LTC 

1969 LOlvG-TERM CAPITAL LOSS CARRY\GV�R 

58 0 52 +o LONG-TERM GAIN3 OR LOSSES, NET COMP hLTGL 

LONG-TERM GAIN OR LOSS AFTER CARAYCVER 

59 D 53 NET CAPITAL GAINS OR LOSSES COMP kGL 

60 o 54 EXCLUOED LahG TERM CAPITAL GAINS cone EXLCG 

61 o ss CAPITAL GAINS OR LosaEs IN AGI COMP CGAGIX 

AFTER LIMITATION 

42 0 56 TAX SAVING8 DUE TO ALTERNATIVE TAX COMP ALTTAX 

63 0 S7 LONG-TERM GAINS FROH INSTALLPENT 127 LTGIS 

SALkS 

64 0 58 LONG-TERM CAPITAL GAINS SHELTERED COMP CGYAX 

UNDER THE ALTERNATIVE TREATMENT 

6s 0 59 COMPUTATION OF HIN. TAXI PREFEREhCE COMP 

INCOME NET Of CAPITAL GAINS 

66 0 60 COHPUTATION OF MIN. TAX, TOTAL ITEW 152 PREFX 

3 Of TAX PREFERENCES 

67 D 61 COMPUTA~IONOF MIN, TAXr OTHER COMP GTRP 

TAXES AEOUCTING PREFERENCE INCOME 

68 D 62 COMPUTATION OF MINI TAXI 197s NET 1SS NCL7S 

OPERATING LOSS CARRYOVER 

69 0 63 COMPUTATION OF MIN. TAX, MINIMUP 156 MTOPY 

TAX DEFERRED FROM PRICR VEAH(S1 

70 0 64 COMPUTATION OF MIN. TAX, UNlJ8ED 157 

CREDIT3 

71 D 65 MAX TAX ON EARNED INCOPE, TAX caw MAXTAX 

SAVINGS FROM MAXIMUM TAX 

72 I] 66 MAX. TAX ON EARNEU INCOMEt EARNED 159 EARN 

INCGME 

773 D 67 MAX, TAX ON EARNED INCCMEt 160 ADJEI 

DEDUCTIGNS 

74 0 b8 NEIGHT 28 hT 

75 C 69 TOTAL EXEMPTIONS 935 

76 0 70 INTEREST INCOME 42 
TREASURY PEHSONAL INDIVIDClAL INCOME TAX MOOEL, 27 JUN 78 2-20 

TA8LE 2e13el8 DATA RECORD SPECIFICATEON FOR THE 1975 

INOIVIOUAL INCCME TAX RETliRN 

HALF-SAMPLE; MAPPED AND PACKED 

FILL0 ARRAY ---HEFERENdE--

SEQ NARE DATA ITEM DESCRIPTION 6NMAPPED EGUIVNOS 8 fv0 SOURCE ALENT 

77 0 71 INCGME TAX hITHHELD 49 

78 0 72 1975 ESTIMATED TAX PAYMENTS so 

79 0 73 AMOUNT PAID WITH FORfl U868 52 

80 0 7U TAX DUE AT TIHE OF FILING s3 

81 0 75 OVERPAYMENTr REFUNO 54 

82 0 76 OVERPAYflENTr CREDIT TG 1976 55 

ESTIMATED TAX 

83 C 77 TAX PAID kITH RETURN 56 

a4 o 78 +. BUSINESS INCOME OR LON 57 

8s 0 79 SUPPLEMENTAL SCHEDULE, NET GAINICR 59 

NET b03S 

86 D 80 PENSIONS, RfNTSt ETC., INCOME OR 60 

LOSS 

87 0 81 +- FARM INCOME OR LOSS 62 

d8 0 82 STATE INCOME TAX REFUNDS 63 

d9 0 83 ALIMONY INCOME 64 

90 C 84 +- OTHER INCOME OR LOSS 65 

91 0 85 ADJUSTMENTS TO INCOME, MOVIIUG 61. 

EXPENSES 

92 D 86 AOJUSTMENTS TO INCOME, EMPbOYEE 68 

BClSIN�39 EXPENSES 

93 0 87 ADJUST~ENTS TO INCOME, PAYMENTS Tt 69 

A KEOGH RETIREMENT PLAN 

94 0 88 AOJUSTMENT3 TO INCOME, PAYMENTS 110 70 

INDIVXOUAL RETIREMENT ACCOUNT 

9s 0 89 AOJUSTMENTS TO INCOME, FORFEITEO 71 

INTEREST PEhALTY 

96 0 90 CREOITS, RETIREMENT INCOM� 75 

97 0 91 CREOITS, INVESTMENT 76 

98 D 92 CREOITS, FOREIGIv TAX 77 

99 0 q3 CREDITS, CONTRIBUTIONS TO CANDIDATE 78 

100 0 94 CREDITSi MOAK INCENTIVE 79 

101 0 9f CREDITS, PURCHASE OF FtEh RESIDEhCE 80 

102 0 96 CREOITS, OTHER TAX CREOITS 81 

103 0 97 OtHlsR TAXES, RECOMPUTED PRIOR YEAR 82 

NOTES: COMP t COMPUTE0 

RESV = RESERVED FOR FUTURE AOOITIONS 

IMPT :IMPUTED ITEM 
WIN 

TREASURY PERSONAL INOIVIOUAL INCCPE TAX MCIDEL. 27 JUN 78 2-2 1 

TAdLE Z..3.1: DATA RECORO SPECIFICATLCk FOR THE 1975 

INDIVIDUAL INCOME TAX RETLRN 

HALF-SAMPLE: MAPPED AN0 PACKED 

-10~~~~~~0~~~w---~~~~m.-m~mw"m~m~~~m~m.~mw~0mm~~

FItLC ARRAY ---KEFEREhCE---

StQ NAME DATA ITEM DESCRIPTION LkMAPPED EQIJIVNOS a h0 SOURCE ALENT m1~m~mD~~o~~1w~=-~o~~~~oom~mm~~-m~m~~oo-m-~o~wo

INVESTMENT TAX CREDIT 

104 0 98 CTHER TAXES, RECOMPUTED PRIOR YEAR 83 

CREDIT 

105 0 99 CTkER TAXES, TAX ON PREMATURE 85 

DISTRIBUTIONS (FORM 5329) 

106 0 100 OTHER TAXES, SELF-EMPLOYMENT TAX 86 

107 0 101 OTh�R TAXES, SOCIAL SECURITY TAX CN 87 

TIPS, UNCOLLECTED TAX 

108 D 102 OTHER T4XESt EXCESS CGNTRIBUTIOhS 88 

TO AN INOIVIOUAL RETIREMENT ACCGUtvT 

109 0 103 OTH�R TAX�$, ALL UThER TAXES 89 

110 0 104 OThER TAX PAYMENTS, EXCESS FICAIRRT 90 

A TAX hITHHELO

111 0 135 OTHER TAX PAYMENTSr CREDIT FOR 

FEDERAL TAX ON GASOLINE 

112 D 106 OTHER TAX PAYMENTS, TOTAL OTHER 

PAYMENTS 

113 0 107 M�OICAL AND OENTAL EXPENSES, 112 

INSURANCE PREMIUMS 

114 D 108 PEDICAL 

MEDICINE 

11s D 109 MEDICAL 

MEDICAL 

116 D 110 MEDICAL 

AN0 OENTAL EXPENSES, 

AND ORUGS IN EXCESS OF 1% 

AND OENTAL EXPEN$�Sr 

AN0 OENTAL IN EXCESS Of 19% 

AND OENTAL EXPENSES, TOTAL 

(AFTER INCUPE LIMIT) 

117 0 111 TAXE8t STATE AND LOCAL INCOME TAX 

118 D 112 TAXES, REAL ESTATE 

119 0 113 TAXES, STATE AND LOCAL GASGLINE 

120 0 114 TAXESt GENERAL SALES 

121 0 115 TAXES, PER~QNALPROPERTY 

122 0 116 TAXES, OThEA 

123 0 117 CONTRIBUTIONS, CA3H 

124 0 118 CGhTRIBUTIONS, OTHER THAN CASH 

91 

92 

33 

95 

98 

99 

100 

101 

102 

103 

104 

COMP 

108 

109 

125 0 119 CONTRIBUTIONSi CARRYOVER FRCM PRLCR 110 

YEAR 

NOTES: COMP :: COMPUTED 

HESV s RESERVED FOR FUTURE ADDITIOtuS 

IMPT = IMPUTED ITEM 1 ~ ~ ~ m . . ~ m ~ ~ ~ ~ m = m ~ ~ ~ ~ o ~ ~ ~ m m ~ ~ ~ o m 
TREASURY PERSONAL IkDIVIDIJAL INCOME TAX MODEL, 27 JUN 78 2-22 

TsrFlLE 2.43.1: DATA RECORD SPECIFICATICN FOR THE 1975 

INDIVIOUAL INCCME TAX RETLRN 

HALF-SAMPLE1 MAPPED AND PACKED 

FILLD ARRAY ---REFEHEhCE---

SkQ NAME OATA ITEM DESCRIPTIGN LkMAPPED EGUIVNUS 8 NO SOURCE ALENT * ~ o ~ ~ ~ ~ ~ ~ ~ ~ ~ m ~ ~ ~ - ~ ~ ~ ~ ~ ~ w ~ 

126 0 120 CONTRIfiUTrONS, OThER COMP 

127 0 tZ1 MISC. OEDUCTIONSi UNLOh DUES 114 

I28 0 122 MISCe ~EOUCTIONS~POLITICAL 116 

CONTRIBUTIOhS 

129 0 123 MISC. DEDUCTIONS~ OTHER Cow 

130 0 124 SHORT-TERM CAPITAL GAINS OR LOSSES, 118 

PRE-t970+PUST-1969 ST CAPITAL bCSS 

131 0 125 NET LOSS BEFORE LIMITATION COMP 

132 D 126 ALTERNATIVE TAX COMP 

133 0 127 PENSIONS AN0 ANNUITIES, INCCME THIS 129 

y�AR 

134 0 128 +- RENTS, NET INCOME GR k�T LO89 1.31 

135 0 129 +r ROYALTIESr NET INCOME OR NET lt32 

LOSS 

136 0 130 PARTNERSHIPSI TOTAL INCOME 1133 

137 0 l.31 PARTNERSHIPS, TOTAL LOSS 134 

138 0 L32 +- PARTkERStiIPS, NET INCOME OR hET 135 

LOSS 

139 0 133 ESTATE OR TRUST, TOTAL INCCME 1.36 

140 0 134 ESTATE OR TRUST, TOTAL LOSS 137 

141 0 135 +- ESTATE OR TRUST NET INCOME ICR t38 

NfT LGSS 

142 0 136 SMALL 8bSINESS GORP,, TOTAL INCCHE 139 

143 0 137 SMALL BUSINE3S CORP., TOTAL LOSS 140 

144 0 138 +- WALL BUSINESS CORPCRATLQN lrET 141 

INCOME OR NET LOSS 

145 0 139 SCHEDULE SE NET EARNIbCS FROM SELF- 142 SEEARN 

EMPLOYMENT 

146 D 140 COMPUTATION OF MIN. TAX, ACCEL. 143 

DEPA. ON LGC-INCOME RENTAL HOUSING 

147 0 141 COPPUTATION OF MIN. TAX, ACCEL, 144 

OEPH. ON OTHER REAL PRCPERTY 

148 0 142 COPPUTATION OF MIN. TAX, ACCEL. 145 

OEPRe ON PERSONAL PROPERTY 

149 0 143 CUFPUTATfON OF MIN, TAX, TOTAL 146 

NOTES: COMP :: COMPUTEC 

RE8V = RESERVED FOR FUTURE AODITIGhS 

IMP1 s IMPUTED ITEM ~ ~ o o ~ ~ ~ w ~ ~ o ~ ~ I o = - ~ ~ o ~ ~ ~ ~ ~ o ~ 
TREASURY PERSONAL INOIVIOUAL INCOVE TAX MOOEL. 27 JI;N 78 2-25 

TABLE 2.+301: DATA RECORD SPECIFICATLCk FOR ThE 1975 

INOIVIDUAL IhCCME TAX RETLRN 

HACF-SAMPLE; MAPPED Ah0 PACKED 

FIELD ARRAY ---REFEHE~uCE---

SEQ NAME DATA ITEM DESCRIPTIOh LhMAPPEO ECUIVNU3 8 NO SCURCE ALENT ~ ~ m m ~ ~ ~ ~ ~ ~ m ~ m ~ ~ ~ ~ m m ~ ~ 

AMORTIZATIOh 

150 0 144 COMPUTATICN OF MINI TAX, STGCK 147 

OPTIONS 

151 0 145 COMPUTATION 0 MINI TAX, RESERVES 148 

FOR EA0 OEBT3 

152 0 146 COMPUTATION OF MINI TAX, DEPLETICh 149 

153 D 147 COMPUTATION GF MIN. TAX, CAPITAL 150 

GAINS 

154 D 148 COMPUTATI~NOF MIN, TAX, EXCLUSIOh 152 

155 D 149 COMPUTATION OF MIN. TAX, TAX FROM 153 

PREMATURE OISTRIBUTIONSCSE RETIREPENT) 

156 0 150 COMPUTATION OF MIN, TAX, TAX CRRRF- 154 

OVER FROM PRIOR YEAR(S1 

157 0 151 MAX. TAX ON EARNED INCCME, EARNED COMP 

NET INCOME 

158 0 152 MAX. TAX ON EARNED INOCME, TAX COW 

PREFERENCES IN EXCESS OF 530,000 

159 0 153 MAX. TAX ON EARNEO INCOME, AOJUSTEO COMP 

EAHNkD TAxAeLE INCOME 

160 D 154 MAX, TAX ON EARNED INGCHE, MAXIHkP COMP 

TAX 

161 D 155 FORM 4952, INVESTMENT INTEREST,- 165 IhVIT 

TOT AL 

162 0 156 FORM 4952, INVESTMENT INTEREST, 166 

TOTAL NGN-BUSINESS 

163 0 157 FORM 4952, IWESTMENT INTEREST, 167 

IhTEREST DEDUCTION DISALLOhED 

164 0 158 FORM 4972, SPECIAL LUMP-SUM INCCPE 168 

AVERAGING8 CROINARY It4C[iM� PCIRTIGh 

165 O 159 FORM 4972, SPECIAL LUPP-SUV INCOVE 169 

AVERAGIlYGp 10-YEAR TOTAL 

166 0 160 FORM 4972, SPECIAL LUMP-SUP INCOVE 170 

AVERAGING, TOTAL TAXAULE AMOUNT 

167 D 161 FORM 4972, SPECIAL LUMP-SUP IhCCPE. 171 

AVERAGIlVG, ADJUST�O TOTAL TAXABLE AMOUNT 

NOTE3: COMP :COMPUTED 

RESV o RESERVED FOR FUTURE ADOITIOh3 

IVPT 0 IMPUTED ITEM ~ m m ~ ~ ~ ~ ~ ~ ~ ~ m ~ ~ - ~ " m ~ ~ ~ m m ~ m m ~ m ~ ~ 
TREASURY PERSGNAL INDIVIDUAL INCOME TAX MODEL, 27 JUN 98 2-24 

TABLE 2&3.1: DATA RECORD SPECIFICATICN FUR ThE 1975 

INDIVIDUAL INCCME TAX RETLRk 

HALF-SAMPLE1 MAPPEO AND PACkEO 

a - w - ~ ~ ~ o ~ w w w ~ w w - - m ~ ~ m ~ ~ ~ ~ w o o m w w o - ~ o m m o m ~ w 

FIELD ARRAY -a-HEFEHEhCE---

S�Q RAM� DATA ITEM DESCRIPTLON UNMAPPED ECUIVNUS 8 Na SOURCE ALENT ~ - ~ w ~ ~ D ~ ~ ~ ~ o w ~ - . ~ ~ ~ ~ a ~ w w ~ ~ - w ~ ~ ~ o ~ 

168 0 162 FORM 4972, SPECIAL LUMP-SUP INGCPE 172 

AVERAGIhG, TAX ON OROIhAR'Y INCOME 

169 0 163 FORM 4972, SPECIAL LUMP-SUM INOCME 173 TSLSIA 

AVERAGIFtG, TAX FROM SP&CfAL INCOME 

170 0 164 FORM 4972, 1974 INVfSTMENT INTEREST 176 

I ORDINARY INCOME PORTION 

171 0 165 FCRM 4972, 1974 fNVESTP�NT INTEREST 177 

t TGTAL 8EFGRE EXCLUSLCN 

172 0 166 FGRM 4972, 1974 INVESTPENT INTEREST 178 

I TOTAL TAXABLE AMOUNT 

17.3 0 167 FORM 5495, COST OF RESIOENCE 174 

174 0 166 FORM 5405, ADJUSTED BASIS 

175 0 169 IEIVESTM�NT INTEREST, IkTEREST 

EXPENSE ALLOWED, NON-B~JSINESS 

175 

COMP IhVIA 

176 0 170 IMPUATIOIV, STATE & LOCAL BONO h,A, 

INTEREST 

177 C 171 IkPUTATION, SHARE OF WAGE INCOME 

ATTRIBUlAeLE TO SPOUSE NOA, 

178 C 172 IMPUTATION, SHARE OF WAGE INCGME hoAo 

NOT ATTffIBUTA6LE TO HUSBAND'S 1ST J06 

179 0 173 IMPUTATION, RESERVE0 FOR FUTURE IMPT 

ADOITIONS 1 

180 0 174 CO~PUTATION MINO TAX, 1/S PAEFEGEhCES FROW PREVLOUS S YEARS COMP FIFTH 

181 0 175 IMPUTATION, RESERVED FOR FUTURE 

A00 IT 1aFts 

IMPT 

182 D 176 IMPUTATION, RESERVED FCR FUTURE IMPT 

aODITIONs 

183 0 177 IMPUTATION, RESERVED F'CR FUTURE 

ADD If IONS 

IMP1 

184 0 178 IMPUTATION, SUCIAL SECURITY 8 IMP1 

RR RETIffE.BENEFIT3 

16s 0 179 IMPUTATION, RESERVED FOR FUTURE 

ADD I TIONS 

IMPT 

186 C 180 IMPUTATION, R�SERVEO FCR FUTURE IMPT 

NCJTES: CGMP = CCWUTED 

RESV = RESERVED FOR FUTURE ADCITIGNS 

IMPT f IMPUTED ITEM w ~ m w ~ o w ~ w w w . m ~ - ~ ~ w o ~ m w ~ a ~ ~ w w o w w ~ ~ ~ w w w ~ w o ~ 
TREASURY PERSONAL IhDIVIDlrAL INCOME TAX MOOEL. 27 JUh 78 2-2s 

TABLE 2.55.1: OATA RECORO SPECIFICATICN FGR THE 1975 

INOIVIOUAL INCCME TAX RETIJRN 

HALF-SAMPLE) MAPPED AND PACKED 

ADO IflONS 

187 0 181 IMPUTATION, RESERVED FCR FUTURE IMP1 

AooiTIaNs 

188 WM i en 8IISINES3 OR FARW IIvOICAPCR 1 

189 PM 2 BUSIND BUSINESS INDICATOR 2 

190 PM 3 CSELI CORRECTED SELECTION ITEM U 

COO� 

191 MM 4 OCINO OISTRICT OF COLUMBIA 5 

INDICATOR 

1'32 YM 5 OEPINC OEPENOENT kITH UNEARhED 6 

INCGME CODE 

193 HM 6 DGROUP GROUP COOE 7 

194 MM 7 013T DISTRICT CODE 8 

19s MP 8 ELECT PRESIDENTIAL ELECTIOh FUIVO 9 

CODE 

196 MM 9 FLPO FILING PERIOD CODE 11 

197 MM 10 FORM FORM OF RETURN COOE 12 

i9a MM 11 HINTX HIGH INCOME NON-TAXARLE 14 

RETURN CODE 

199 MH 12 PsAMP PUNCHED SAMPLE COOE 16 

200 MM 13 RESAOJ RESIDENCE CREDIT AOJLrSTMEhT 17 

CODE 

291 VM 14 RECREV REVENUE SHARING RE-CODE 18 

2U2 CM 15 RSVARE REkEhUE SHARING COOE 19 

203 CM 16 SCHCF SCHEDULE C OR F IhDICAfOR 20 

204 PM 17 SELI SELECTION ITEM COO� 21 

2u5 )rH 18 STATE 3TATE COOE 22 

206 MM 19 TAXMOD TAX MODEL COOE a3 

207 MM 20 TNOCF TOTAL NUMeER OF PROPRIETOR- 24 

SHIP SChEDULES 

208 PH 21 TSAMP TAX MOOEL SAMPLE CODE 25 

209 YM a TxeAL TAX BALANCE CODE 26 

210 IWM 23 TXST TAX STATUS cam 27 

211 MM 24 PUNCHED SELECTION AMOUNT ,I6 

212 MM 25 *c*******COhFIOENTIAL******** 03 7 
TREASURY PERSONAL IhDIVIDUAL INCOME TAX MOQEL, 27 JUN 78 2-26 

TABLE 2*,3.1: DATA RECORD 3PEhFICATLCN FOR THE 1975 

INDIVIDUAL INCGME TAX RETLRN 

HALF-SAMPLE~ MCIPP�D Ah0 PACKED 

216 PZM 182 

217 PFc 183 

218 WM 184 

219 MM 185 

220 MM 186 TAG� 

221 CM 187 

222 PM 188 

223 PM 189 

224 MM 190 

225 MM 191 

226 PM 192 

227 PM 193 

228 CM 194 

2129 PM 195 SAGE 

230 WM 196 

231 CM 197 

232 CM 198 

233 PM 199 

234 PM too 

NUT�§: COMP = COMPUTED 

RESV = RESkRVEO FOR FUTURE ADDITIQhS 

IMP1 :: IMPUTED ITEM 
TREASURY PERSONAL INDIVIDUAL INCGME TAX MOOEC. 27 JCN 78 2-27 

2.4. 1978 IIvCGME TAX RETURN 112 SAMPLE: MAPPEC 8 PACKEC, 

THE 1978 INDIVIDUAL INCCME TAX RETURN HALF SAMPLE IN ThE MAPPED 

AN0 PACKED FORPAT OlFFERS FROM Tn� 1975 HALF SAMPLE CF $ECtION 2~2 

IN THt FOLLOkIEtG WAYS: 

(AI THE LEVELS OF TH� INCOME ITEPS AND THE DEDUCTION 

ITEMS HAVE BEEN ADJUSTED TO REFLECT THE ESTIMATED 

1978 CALEhDAH YEAR TOTALS, 

(a) Tht AGCR�GATE IUUVBER OF RETURNS Ah0 EXEPFTICNS 

HAVE 8EEN ADJUSTED=-BY MOOIfYIkG ThE kEIGFT ON EACH 

RETUWN==rO H�FLECT TH� ESTIMATED 1978 CALENOAR 

YEAR TOTALSWIE ADJUSTMENTS IN (AI ANO (e) A~OVE 

ARE REfERRtD Tb AS ThE EXTRAPOLATION PROCESS AN0 

IS Th� SUBJECT OF CHhPTEH 31, 

(C) STATE AN0 LOCAL 6CNO INTERfST HA3 BEEN Sb’PUlEO TO EACH 

RECOHO AN0 IS STCREO IN O(1701. 

(Dl TFE ORIGINAL VALUE OF REPORTkD CHILD CARE hAS BEEF( 

REPLACED kIrH AN IMPUTE0 VALUE NHICH REFLECTS TkE 

LI6ERALIZATIaN OF THE CHILD CARE PROVISLChS SINCE 197s. 

(�1 TkE SHARE OF HAG� INCOME ATTRf8UT48LE TC THE SPCU3E 

CN JQINT RETURNS HA3 BEEN IMPUT�D, TH19 IMPUTATION 

IS BASED ON TABULATIONS OF ALL JOINT RETUAhS FOR NhICH 

kHICH FORMS W-2 WLP� ATTACHED IN 19740 ThE DATA MAS 

PROVIDED 8Y IRS, THIS ITEM IS STCRLO IN D(1711, 

(F) LOCATION O(173) COlvTAINQ A FLAG FUR COIUVERTING A PROPORTION CF THE 197s LCNG-TERM CAPITAL GAhS To 1978 SHORT-TERM 

CAPITAL GAINS, THIS REFLECTS THE 12 MOhfh HOLDING PERICD 

F(CR LUNG TERM GAINS, 

(GI Tk� SOCIAL S�CURITY PAYROLL TAX FiCR TAXPAYER AN0 SPOUSE 

HAS BEEN IMPUTED TC ThE 1978 FILE AND APPEARS IN D(17S) AN0 

O(1761, 

(HI SCCIAL SECURITY 8 RAILROAD RETIREMENT eElvEFIT8 HAVE 

6EEN TRANSFEHRED FRCM THE MERGE FILE (SEE SECTICN 2.51 TU 

THE 1978 FILE AN0 ARE STORED IN D(1781, THIS VARIABLE 
TREASURY PERSGNAL INOIVIDUAL INCOHE TAX WQOEb. 27 SUN 78 2-20 

SbQULD NOT BE USEO EXCEPT IN THE CALCULATION 4F THE 

ELDERLY CR�DIT, 

(11 LCCATIUN O(1791 CONTAINS EXTRA EXEMPTBGNS USEO IN ESTIMATING 1978 NITHHOLDINGe THESE EXEMPTICi+S REPRESENT A DUMMY 

VARIABLE AND ARE NCT ACTUALLY RLPCRTEO Ch Ttl� RETURN, 

(3) lF� DATA ITEM3 MM34 8 HM42, *****CONFIDEhTIAb***** 

AND  CO~FIOf~TIAL** **r HAVE B�Eh CCFtVERTED TO 

T~ETAXPAYER'S AGE AND AND THE SPOUSE'S AGE, ~GTE, 

THAT THE AGE MAY BE ZERO IF TH�RE IS NO TAXPAYER OR 

9PQUSE. 

ThtS SAMPLE CONTAINS IMPUTE0 ITEMIZED OEDUCTLCNS FOR RETURhS THAT 

TOOK THE STANDARD DEDUCTIGN. THEHEFOHE~ TCi� U3ER SHCULC BE 

CAR�FlrL WHEN TESTING ITEMIZED O�OUCTION§ FOH A PCSITIVE ENTRY 

SIN&� THIS COUCO Ik7RODbCE NON-REPCRTED FIGURES IhTG THE RESULTSe 
TREASCIGY PEHSONAL INDIVIDUAL INCOME TAX MODEL. 27 JUN 78 2-29 

UNLIKE PREVIOUS TAX RETURN SAMPLES USED 8Y TPt GFFICE CF TAX 

ANALYSIS, ThIS SAPPLE HAS DIFFERRING HEIChTg FGR �ACh RETLRN DUE 

TG THE SAMPLING METHOOCLOGY EMPLOYED IN DRAikEhC THE SUBSAMPLE. 

HOWtVER, THE NEIGhTS STILL SUM TO PRODUCE NATICNAL ESTIMATES, 

ALTHCGGh IT IS POSSI6LE TO PRUDUCE $U~=hATLCkAL ESTIMATES BY STATE 

(OR OISTRICT), THIS IS hOT RECOMH�hDED SINCE THE NUMBER GF RETURNS 

IN THE SAMPLE FCR EACH STATE (OR OISTRICT) IS hCiT LARGE ElvCUGh TC 

IhSURE RELIABLE ESTIMATES FOR MOST ITEMS, 

2e4.5, DATA RECORD SPECIFICATION, 

EVERY DATA RECORD IN THE TAX SAMPLE REPRESEhTS Oh� INDIVIDUAL 

IhCOME TAX RETURN Ah0 CONTAINS 234 DATA ITEMS (TBE ORIGIhAL 200 

DATA ITEMS PLUS 34 NEk ITEflS), EACH DATA FIELC I$ REFERENCED 8V P 

FIELD $�QUENCE NUMB�R AN0 STORE0 NITHIN THE DATA FIELD 19 A NUM~ER 

WHICH CORHESPONOS TQ AN ENTRY MAD� ON A FOAP 1040 OR AUXILIARY 

SCH�DULE, A COMPUTED VARIABLE FROM THE TAX PCCEL PRGGRAP, OR AN 

IMPUTEC VARIABLE EXCGENGUS TO THE TAX MCDEL, THE FIRST 74 FIELD 

SEOUEhCE NUMBERS IN TABLE 2.S.l REFERENCE ThE '8ASIC VARIABLES' 

AN0 TPE REMAINNING FIELD SEQUENCE NUHaERS REFERkNCE ThE 'OTHER 

VARIABLES,' 

SINCE ELECTRONIC COMPUTERS REQUIRE THAT EACh NLrMeER B� CLASSIFIED 

AS ONE OF TkU MCJOES--INTEGER MOOE(1) OR REAL HORE(R)--THE ARRAY 

FtAME Ah0 SUBSCRIPT NUMBER EMPLOYE0 BY ThE TAX MODEL FOR EACh DATA 

ITEM APPEARS IN TABLE 2aS,1* 

2.4.4, OTHER 0GCUMENTATION, 

NONE 
THEASbPY PERSONAL IhDIVIDUAL INCCME TAX MOOEL, 27 JUN 70 2-20 

TABLE 2.4.1: DATA RECORD SPECIFICATLCN FOR THE 1978 .) 

INDIVIDUAL INCCME TAX R&TLRN 

HALF-SAMPLE; MAPPED AN0 PACKED 

1 Fc 1 CONSECUTIVE RETURN NUMaER COMP RETM 

2 M Z MARS MARITAL STATUS CODE 15 MARS 

3 )cr 3 FDED FORM OF DEOUCTLClv CODE 10 IDEOX 

4 Ir 4 CSAMP COMPUTED SAMPLE COOE 13 PCOOE 

5 )cr 5 PRESENT LAW ACI CLASS COO� COMP JY 

6 )r 6 F4972 FORM 4972 CODE 1.3 F4972 

7 0 1 TAXPAYER EXEMPTIONS 29 TXPYE 

8 0 2 AGE EXEMPTIONS 130 PGEDE 

9 D 3 BLIND EXECPTIONS . 31 BLNOE 

10 0 4 DfPENOEIvT EXEMPTIONS 1 32 OEPNE 

ii o 5 CHILD AT HOME EXEMPTIONS c33 CAHE 

12 0 6 CHILO AlrAY FRQH HOME EXEMPTIONS 934 CAFHE 

13 0 7 WAG�Sp SALARIES, ETC, t39 kAS 

14 0 6 DIVIDENOS, GRC33S OIVIOENOS 40 GO 

15 0 9 DIVIDEXCLND EXCLUSION COMP OE 

16 0 10 OIVSD�NDS, BALANCE Ih AGI 41 TAX0 

17 0 11 ALL INCOME GTHER THAN DIVIDENDS Ah0 COMP RESID 

CAPITAL GAIN3 IN AGI 

18 0 12 ADJUSTMENTS TO INCOM�, SICK PAY 66 SICKPY 

19 0 13 TOTAL STATUTORY AOJUSTPENTS 43 ADJUST 

20 0 1U t- AoJU3TED GROSS INCOME OR DEFICIT 44 AGIX 

21 0 15 INCGME TAX BEFORE CREDIT8 45 TAX8 

22 0 16 P�RSONAL EXEMPTION CREDIT 46 EMCRX 

23 0 17 CHEDIfSr TOTAL COMP TXCRO 

24 0 18 TEhATIVE TAX AFTER CREDITS CQMP TTAXA 

25 D 19 OThER TAXES, MINIMUM TAX ' 84 RINTAX 

26 0 20 OTHER TAXES, SUBTOTAL EXCLlrDING COMP CTHERT 

MINIMUM TAX 

27 0 21 INCGME TAX AFTER CREDITS 47 TAXAX 

28 D 22 EARNED INCOME CREDIT 51 EICX 

29 0 23 TOTAL DEDUCTION3 72 ax 

30 0 24 EXEMPTIONS AMOUNT 73 EXEM 

31 0 25 TAXABLE IlvCGME 74 TfNCX 

32 C 26 TAX SAVINGS FROM INCOME AVERAGING COMP AVESAV 

33 0 27 CAPITAL GAINS DISTRIBOTLON 58 CGOSO 

NOTkS: COMP t COMPUTEG 

HESV f RESERVEG FOR FUTURE ADDITIONS 

IMPT = IMPUTED ITEM 
TkEASURY PERSONAL INDIVIDUAL INCGME TAX MODEL, 27 JUN 78 2-3 1 

TABLE 2,401: DATA RECORD SPECIFICATICN FOR THE 1978 

INDIVIDUAL INCCME TAX RETLRN 

HALF-SAMPLE; MAPPED AND PACKED 

34 D 28 FULLY TAXABLE PENSIONS AN0 ANNUI- 61 FTPEN 

TIES 

35 D 29 PENSSONS AND INNUITfE3, TAXAaLE L30 PTPEN 

PORTION 

36 0 30 MEDICAL AND OENTAL EXPENSES, 96 8M IP 

BALANCE OF INSURANCE PREMIMUMS 

37 0 31 CONTRI8UTIOhSr TOTAL 111 ON 1 

38 0 32 IIvTER�ST EXPEhSf, HOME MORTGAGE 106 HM LE 

39 D 33 INTEREST EXPEhSE, OTHER COMP OIE 

40 0 34 INVESTMENT INCOP� COMP INVY 

41 D 35 PERCENT NON-BUSINESS COMP PNB 

42 0 36 IrUTEREST EXPEh3Et TOTAL 107 ON2 

43 0 37 TAX�Sv TOTAL 1os CN3 

44 0 38 MEOICAL AIvD DENTAL EXPENSES, 94 ON4 

MEDICINE AN0 DRUGS 

45 0 39 MEDICAL AND DENTAL EXPENSES, COMP ON5 

MEDICAL AkD DENTAL 

46 C 40 MEDICAL AND DENTAL EXPENSES, FULL COMP ON6 

M�OICAL INSURANCE PREMIUM3 

47 C 41 MISC, DEDUCTIONS, ALIMONY PAID lb3 ALIMNY 

48 0 42 MISC. DEDUCTIONS, CHILD AND 11s CHILOC 

DEP�NDEFtT CARE 

49 D 43 M13C. REDUCTIONSt TOTAL 117 ON7 

50 0 44 NET-CASUALTY OR THEFT LOSS 112 ON8 

51 0 45 +-SHORT-TERM GAINS OR LOSSESt NET COHP STGL 

ST GAIN OR LOSS BEFORE CARRYOVEN 

52 0 46 SHORT-TERM GAINS UR LOSSESr PRE- COMP P7OSTC 

1970 SHORT-TERM CAPITAL LOSS CARRPCVER 

53 0 47 SHCRT-T�RM GAINS OR LOSSES, POST- COMP PbOSTC 

1969 SHORT-TERM CAPITAL LOSS CARRYGVE 

' 54 0 48 +- SHORT-TERM GAINS OR LOSSES, NET COMP kSTGL 

ST CAPITAL GAIN OR LOSS AFTER CbRkY 

SS 0 49 LONG-TERM GAINS OR LOSSES, NET LT COMP LTGL 

GAIN OR LOSS BEFORE CARRYOVER 

56 0 50 LONG-TERM GAINS OR LOSSESt PRE-1970 121 P'IOLTC 

NOTES: COMP = CUMPUTEO 

RESV 0 RESERVED FOR FUTURE AODITIONS 

IMP7 = IMfUTED ITEM 
TREASURY PERSONAL INOIVIDUAL INCOME TAX MODEL, 27 3l~N78 2-12 

TABLE 2.4.1: DATA RECORD 3PECIFICATI~ONFOR THE 1978 

INDIVIDUAL INCOME TAX RETbRN 

HALF-SAMPLE8 HAPPED AND PACKED 

LONG-TERM CAPITAL LO83 CARHYC;IV�R 

57 0 51 LONG-TERM GAINS 014LOSSES8 POST- 122 P69LTC 

1969 LOluG-TERM CAPITAL LO83 CARRYiCVER 

58 0 52 +* LONG-TERM GAINS OR LOSSESI NET COMP NLTGL 

LUkG-TERM GAIN OR LO38 AFTER CARRYCVER 

59 C 53 NET CAPITAL GAIkS OR LOSS�$ CCMP kGL 

00 0 5U 

bl 0 55 

b2 0 56 

61 0 57 

64 c 58 

OS C 59 

a6 C e0 

67 0 61 

68 0 62 

EXCLUDED LGNG TERM CAPITAL GAINS COMP EXLCG 

CAPITAL GAIM OR LOSSES IN AGI caw CGAGIX 

AFTER LIMITATION 

TAX SAVINGS DUE TO ALTERNATIVE TAX COMP ALTTAX 

LONG-TERM GAINS FROM INSTALLMENT ti17 LTGIS 

SALE3 

LONG-TERM CAPITAL GAINS SHELTERED COMP CGYAX 

UNQER ThE ALTERNATIVE TREATMENT 

COMPUTATION OF MIN. TAXI PREFERENCE COMP PREFI 

INCOME NET OF CAPITAL GAIhS 

CWPUTATION OF MIN. TAX, TOTAL ITEM 152 PREFX 

3 Of TAX PREFERENCES 

COPPUTATION OF MIN, TAX, OTHER COMP GTRP 

TAXES REDUCTING PREFERENCE INCCFE 

COMPUTATION OF MINI TAX8 1975 NET 155 NCL75 

OPERATING LG8S CARRYOVER 

69 0 63 COMPUTATION OF MIN. TAX8 MIhIMUM 156 MTOPY 

TAX DEFERRED FROM PRLOR Y�AR(Sl 

70 0 64 COMPUTATION OF MIN. TAX, UNUSED 157 UNCRS 

CREDITS 

. 71 C 65 MAX TAX ON EARNED INCGW�t TAX COMP MAXTAX 

3AVINGS FROM MAXIMUM TAX 

72 D 66 MAX. TAX ON EARNEO INCCME, EARNED 159 EARN 

INCOME 

71 0 67 YAXm TAX Oh EARNED INCGME, 160 hDJE I 

OEDUCTUJNS 

74 !2 68 WEIGHT 28 kf 

75 0 60 TUTAL EXEMPTIONS ' 3s 

76 0 70 IluT�RfST INCOME 42 

NUTE3: COMP f COMPUTED 

RESV :: RESERVED FOR FUTURE AODITIOkS 

IMPT = IMPUTED ITEM 
TREASURY PERSONAL 1NOIVID.UAL INCOME TAX MOOEL. 27 JliN 78 2-33 

m TABLE he4.l: OATA RECORD SPECIFICATIGN FOR THE 1978 

INOIVIOUAL INCCME TAX RETLRN 

HALF-SAMPLE; MAPPkD AN0 PACKED 

~m~m~om~ooo~oo-om-o~~~~o~m-mm~~oom~~om~o~mwm~

FIELD ARHAY ---REFEREhC�--= 

SEQ NAME DATA ITEM DESCRIPTLON LNMAPPED EGUIVNUS 8 h0 SOURCE ALENT oI~~I~o~oomoommm~~~~om~mmm~~~~~o~~omom~~~mm~ommm

77 0 71 INCGME TAX h1THhELD 89 

78 G 72 1975 ESTIMATED TAX PAYPENTS 50 

79 0 73 AMOUNT PA10 NITH FORM 4868 52 

80 0 74 TAX DUE AT TIME OF FILIhG 53 

81 0 75 CVERPAYHENT, REFUNO s4 

d2 0 76 OVERPAYMENT, CREDIT TO 1976 55 

ESTIMATE0 TAX 

83 0 77 TAX PAID hITH RETURN 56 

d4 0 78 +- BUSINESS INCOMf OR LOSS 57 

85 0 79 SUPPLEFENTAL SChEOULE, h�T GAIN CR 59 

NET LOSS 

a6 0 80 PENSIONS, RENTS, EtCep INCCME OG 60 

LOSS 

87 0 81 +- FARM INCGME OR LOSS 62 

88 0 82 STATE INCOVE TAX REFUNDS 63 

69 0 8: ALIMONY INCOME 64 

90 0 84 +- GTHER INCOME OR LOSS 65 

91 D 85 AOJUSTMENTS TO INCOMEf MOVING 67 

ExPENQES 

92 0 86 ADJUSTMENTS TO INCOME, EMPLOYEE 68 

BUSIhESS EXPEhSES 

93 0 87 ADJUSTMENTS TG IhCOME, PAYMENTS TIC 69 

A KEOGH RETIREMENT PLAh 

94 0 88 AOJUSTMENTS TO INCOME, PAYMENTS VC 70 

INOIVIOUAL RETIREMENT ACCOUNT 

95 0 89 ADJUSTMENTS TO lNCOMEv FORFEITED 71 

INTEREST PENALTY 

96 0 90 CREDITS, RETIREMENT INCOME 75 

97 0 91 CREDITS, INVESTM�NT 76 

98 D 92 CREDITS, POREIGN TAX 77 

99 0 P3 CREDITS, CONTHIBUTIONS 70 CANDLOATE 78 

100 0 94 CREDITS, kORK INCENTIVE 79 

101 0 9s CREOITS, PURCHASE OF hEW RESIDENCE 80 

162 D 96 CREDITS, OTHER TAX CREDITS 81 

103 0 97 OTHER TAXES, RECOMPUTE0 PRDCR YEAR 82 

NOTES: CCMP = COMPUTE0 

RESv = RESERVED FOR FUTURE AOOITIOhS 

IMPT = IMPUTED ITEM ~~~~o~"~moo~~om~m~~m~wm~m~mwoo~~~ooommmmo~~~m~om
THEASCIRY PEHSONAL IhOIVIOUAL INCOME TAX MOOEL. 27 JUrV 78 2-34 

TABLE 2*4*1: OATA RECORO SPECXFICATIGN FOR THE 1978 

I~OIVIDUALINCCME TAX RETLRrV 

HALF-SAHPLE; MAPPED AN0 PACKED 

FIELC ARRAY ---REFERENCE---

SEQ NAME DATA ITEM DESCRIPTIGh LhMAPPEO ECUIVNUS 8 rua SCURCE ALENT ow~m1w~m~w~m~1mm~wm~~~w~o~~ww~~~mo~~o~omwm

INVESTMENT TAX CREDIT 

104 0 98 OTH�R TAXES, HECOMPUTEC PRIGR YEA6 

WIN CREDIT 

135 0 99 OTHER TAXES, TAX UN PREMATURE 

OISTRIBUTIChS (FORM 5329) 

106 0 100 OTHER TAXES, SELF-EMPLCYHEhT TAX 

107 0 101 CTH�R TAXES, SOCIAL SECURITY TAX Cb 

TIPS, UNCOLLECTED TAX 

108 D 102 OTHER TAXES, EXCESS COkTRIBbTIChS 

TO AN IIUOIVIOUAL RETIREMENT ACCGUhT 

109 o 103 arm TAXES, ALL OTHER TAXES 

110 0 104 OTHfR TAX PAYMENTS, EXCESS FICAIRRT 

A TAX MXTHHELD 

111 0 105 OTH�R TAX PAYMENTSi CREDIT FCH 

FEO�RAL TAX ON GASOLIkE 

112 0 106 OTHER TAX PAYMENTS, TGTAL OTHER 

PAYMENTS 

113 0 107 MEOICAL AN0 DENTAL EXPENSES, 112 

XNSllRANCE PREMIUM3 

114 0 108 MEOICAL AND OENTAL EXPEN$ES, 

MEDICIN� AN0 DRUGS Ilu EXCESS OF 1% 

115 D 109 MEDICAL AND OENTAL EXPENSES, 

MEDICAL AND OENTAL IN EXCESS OF bfX 

116 0 110 MEOICAL AN0 DENTAL EXPENSES, TOTAL 

(AFTER INCOME LIMIT) 

117 0 111 TAXES, STATE AND LOCAL INCOME TAX 

118 0 112 TAXES, REAL ESTATE 

119 0 11.3 TAXES, STATE AND LOCAL GASOLINE 

120 0 114 TAX�$, GENERAL SALES 

121 0 115 TAXES, PERSONAL PROPERTY 

122 C 116 TAXES, OTHER 

123 0 117 CONTRIBUTIChS, CASH 

124 D 118 CGNTRIBUTIOhS, OTHER THAN CASH 

$3 

05 

86 

89 

88 

e9 

90 

91 

92 

93 

95 

98 

99 

100 

101 

102 

103 

104 

COMP 

108 

109 

125 0 119 CONTRIBUTIONS, CARRYOVER FRCH PnICm 110 

YEAR 
TREASURY PERSCNAL IhOIVIDUAL INCOME TAX MODEL, 27 JUN 78 2-25 

TA8t.E e.4.1: OATA RECORD SPECIFICATLGk FOR THE 1978 

IhOIVIDUAL INCCME TAX R�TliAN 

HALF-SAMPLE? MAPPED AND PACKED 

FILL0 ARRAY , ---REFEREhCE---

S�Q NAME DATA ITEM OESCRIPTION LNMAPPEO EQUfVNUS L NO SCURCE ALENT _________~ 

126 0 120 CONTRIBUT~O~S,OThER 

127 0 121 MISC, OEDUCTION~I UNIGN DUES 

128 0 122 MI9Ce OEDUCTIONS, POLITICAL 

CONTRIBUTIONS 

129 0 123 MISC. DEOUCTIONSr OTWER 

130 0 124 SHORT-TERM CAPITAL GAINS OR LOSSES, 

PRE*197O+P~ST-1969 ST CAPITAL L'OS3 

131 o 12s NET Laas BEFORE LIHITATLQN 

132 0 126 ALTERNATIVE TAX 

133 0 127 PENSIUNS AND ANNUITIES, INCCME THIS 

rEAR 

134 0 128 +- RENTS, NET INCOME OR NET LOSS 

135 0 129 +- ROYALTIES, NET INCOME OR NET 

LO38 

136 0 L30 PARTNERSHIPS, TOTAL INCOMk 

137 0 131 PARTN�R$HIPSr TOTAL COS3 

138 0 1.32 +- PAHTNERSHIPS, NET INCOME OR EtET 

LOS8 

139 0 t33 ESTATE OR TRUST, TOTAL INCOME 

140 0 134 ESTATE OR TRUST, TOTAL LOSS 

141 D 135 +- ESTATE OR TRUST NET INCOME ICR 

NET LOSS 

142 0 1\36 SMALL BUSINESS CORP,r TOTAL INCOME 

143 0 137 SMALL BU3IhESS C0RP.r TOTAL LOSS 

144 0 138 +- 8MALL BUSfN�$S CORPORATION hET 

INCOME OR !VET LOSS 

145 0 139 SCHEDULE SE NET EARNING8 FROM SELFEMPLOYMENT 

146 o 140 COVPUTATION aF MIN. TAX, ACCEL, 

DEPHa ON LOh-INCOME RENTAL HOUSING 

147 0 141 COMPUTATION OF MIN, TAX, ACCEL, 

OEPR. Oh UTFER REAL PROPERTY 

148 0 142 COPPUTATION OF MIN, TAX, ACCEL, 

DEPR, Oh PERSONAL PROPERTY 

149 0 143 COPPUTATION OF MIh. TAX, TOTAL 

NOTES: COMP f COMPUTE0 

RESv :RESERvEO FOR FUTURE A00ITIOhS 

IMP1 = IMPUTE0 ITEM 

caw 

114 

116 

COMP 

118 

COMP 

COMP 

129 

b3 1 

t32 

1833 

L34 

1135 

1836 

137 

1138 

1.39 

140 

141 

142 SEEARN 

143 

144 

145 

146 

mom~~~~~~~~~~m~mmmm~m~~m~m~~m~-o~o~~~omm-m~m
TREASURY PERSONAL INDIVIDUAL INCOME TAX MODEL. 27 JUN 78 ' 2-36 

TABLE 2.4.1: DATA RECORD SPECIFICATICIV FOR ThE 1978 

INDIVIOUAL INCOME TAX RETCRN 

HALF-SAMPLE: MAPPED AN0 PACKEO 

w~--m~mm-~~-o1-~-.-w~-m--~m-~mm~w~m~~w~mm~mm~~~m

FIlsLD ARRAY ---REFEREhCE---

SEQ NAME DATA ITEM DESCRIPTION bkMAPPED EGUIVNUS & NO SCURCE ALENT am~-om~owm~om--~m-m~~mmm~--wmm~m~om~~~mm~o

AMCR T IZA T ION 

150 D 144 COMPUTATI@N OF MINI TAX, STCCK 147 

OPTIQNS 

151 0 145 COMPUTATION 0 MINI TAX, RESERVES F 148 

FOR BAD DEBTS 

1'52 0 146 COMPUTATION GF MINI TAX, OEPLETIOh 149 

153 0 147 COMPUTATION OF MINI TAX, CAPITAL 1.50 

GAIFtS 

154 D 148 COMPUTATION OF MI" TAX, EXCLUSEOh 152 

155 0 149 COMPUTATION GF MINI TAX, TAX FROM 153 

PREMATURE OI3TAIBUT'IOhSCSE RETIREPENT)

1'56 0 150 COMPUTATION OF MIh, TAX, TAX CARRY- 154 

OVER FROM PRIOR YEARCS1 

IS7 D 151 MAX. TAX ON EARNEO INCOME, EARNED COHP 

NET INOGHE 

158 0 152 MAXI TAX QN EARNED INCCME, TAX COMP 

PREFEHENCES IN EXCESS OF S3Qr000 

1'59 D 153 MAX. TAX ON EARNED INGCMfr AOJUSTEO COMP 

EAHNED TAXA6LE INCOME 

160 0 154 MAX. TAX GN EARNEO INCGME, MAXIMUP 

TAX 

161 0 155 FORM 4952, INVESTMENT INTERESTr 

TOTAL 

162 0 156 FORM 4952, INVESTMENT IhTEREST, 

TOTAL NGN-BUSINESS 

163 0 157 FORM 4952, INVESTMENT INTEREST, 

INTEREST DEDUCTION DISALLOWED 

164 D 158 FORM 4972, SP�CIAL LUMP-SUM INCOME 

AVERAGING, ORDINARY INCOME POATBOb 

165 D 159 FORM 4972, SPECIAL LUMP-SUM INCCME 

AVERAGIhG, IO-YEAI? TOTAL 

166 0 160 FORM 4972, 8PECIAL LUMP-SUM INCCME 

AVEHAGIhG, TOTAL TAXABLE AWOUhT 

167 D 161 FORM 4972, SPECIAL LUHP-SUM IhCCHE 

AVERAGING, ADJUSTED TOTAL TAXABLE 

NUTES: COMP = COMPUTED 

RESV 3 RESERVE0 FOR FUTURE A001TIOtuS 

IMPT 8 IMPUTED ITEM 

COMP 

165 INVIT 

166 

167 

168 

169 

170 

141 

AMOUNT 
TREASURY PERSONAL IkDIVIDUAL INCOME TAX MOOEL, '27 JUN 78 2-37 

TABLE 2.4.1: DATA RECORD SPECIFICATOCN FOR THE 1978 

INDIVIDUAL INCCME TAX RETURN 

HALF-SAMPLE; MAPPED AND PACKEO 

wwm-mommmmmmmw~mmmmm~omm~momwmwommmmmo~m~owm.~m~wmm*o~~~~m~~ 

FIELD ARRAY ---REFEHENCE--

SEQ NAME DATA ITEM OESCRIPTICN LhMbPPEO �QUI\­

NUS 8 NO aouw AUNT -~mm~o~mommmm~m~~omm*~m~~~o~~wo~~mmmmom~oooo~m~~~oo~w

le8 C 162 FORM 4972, SPECIAL LUMP-SUM INCLPE 172 

AVERAGING, TAX ON ORDIhARY INCOME 

169 C 163 FORM 4973, SPECIAL LUMP-SUM INCCME 173 TSLSIA 

AVERAGING, TAX FROM SPECIAL ItvCOlJE 

170 0 104 FORM 4972, 1974 INVESTMENT INTEHEST 176 

I OROLNARY INCOME PORTION 

171 C 105 FGRM 49721 1974 INVLSTFENT INTEHEST 177 I TOTAL BEFORE EXCLUSLON 

172 D 166 FORM 4972, 1974 INVESTPENT INTEREST 178 

I TUTAL TAXABLE AMOUNT 

173 0 167 FORM SUO51 COY1 OF AESIOENCE 

174 0 168 FORM 5405, ADJUSTED 8ASIS 

175 0 169 INV�STMENT INTEREST, IhTEREST 

EXP�k(SE ALLGkEO, NON-BUSIN�SS 

176 0 170 IMPUTATION, STATE 8 LOCAL BONO 

INTEREST 

177 C 171 IMPUTATIOk, SHARE OF kAGE INCOME 

ATTRIUJTABLE TO 3POUSE 

178 0 172 IMPUTATION^ SHARE OF kAGE INCOME 

NGT ATTRIBUTAaLE TO HUSBANC'S 1ST 

179 C 173 IMPUTATION, FLAG FOR CCNVCRSION 

OF CAPITAL GAINS 

180 0 174 COMPUTATION WIN. TAX, 115 PREF174 

175 

COMP INVIA 

IMPT 

IMP1 

k*A,­

JOB 

IMP1 

caw FIFTH 

IMP1 

IMPT 

IMP1 

IMPT 

IMPT 

IMP1 

ERENCES FROM 

181 0 17s IMPUTATION, 

PAYROLL TAX, 

182 O 176 IMPUTATIONI 

PAYROLL TAX, 

183 0 177 IMPUTATION, 

PREVIOUS 5 YEARS 

1978 SOCIAL SECURITY 

TAXPAYER 

1978 SOCIAL SECURITY 

SPOUSE 

RESERVED FOR FUTURE 

ADD1TIONS, 

184 0 178 IMPUTATIONI SOCIAL SECURITY 1C 

RR.R�TIR.BfNEFITS 

185 C 179 IMPUT~TIONI EXTRA EXEMPTIONS 

FOR WITHHOLDING ESTIMATION 

166 0 180 IMPbTATION, RESERVED FCR FUTURE 

NOTES: COMP = COMPUTED 

RESV z R�StRVED FOR FUTURE RDOITIOhS 

IMPT = IMPUTED ITEM omm~mmmmmomImoomo~m~mw*~mmo~womm*mwm~mmow~ommwo~mwmwmmm~o~mm 
TREASURY PERSGNAL IkOIVIDUAL INCCME TAX MODEL, 27 JUN 78 2-38 

TAELE 2.4.1: OATA RECORD SPECIFICATLCN FOR THE 1978 

INDIVIDUAL INCCME TAX RETCRN 

HALF-SAMPLE; MAPPED AND PACKED 

~ODITIONS 

187 0 181 IMPUTATIONi RESERVE0 FICR FUTURE 

AODITIONS 

raa MM 1 en BUSIhESS OR FARM INOICATICR 

189 PM a eusmo BUSIMSS INOICATOR 

190 YM 3 CSELI CORRECTED SELECTION ITEM 

CCOE 

191 MM 4 DCIND DISTRICT OF COLUMBIA 

INOICATQR 

192 CM 5 DEPINC 

INCGME 

193 MM 6 DGROUP 

194 HM 7 DI9T 

195 MM 8 ELECT 

CODE 

195 MM 9 FLPO 

197 MM 10 FORM 

198 MM 11 HINTX 

RETURN 

199 CM 12 PSAMP 

200 MM 13 RESAOJ 

COO� 

201 MM 14 RECREV 

202 MII 15 RSHARE 

203 MM 16 3CHCF 

204 MM 17 $ELI 

205 MM 18 STATE 

206 MM 19 TAXMOD 

207 MM 20 TNOCF 

DEPEtvOENT WITH UNEARbEI) 

CODE 

GROUP COO� 

GISTRICT CODE 

PRESIOENTIAL ELECTIOh FUBD 

FILING PERIOD CODE 

FORM OF RETURN caoE 

HIGH INCOME Noh-TAXABLE 

CODE 

PUNCHED SAMPLE COO� 

RESIDENCE CRfDLT AOJUSTMENT 

REVENUE SHARING RE-COO� 

REVENUE 3HARING COO� 

SCHEDULE C Of? F INOICATdR 

SELECTION If�M CODE 

STATE CODE 

TAX MODEL CODE 

TOTAL NUMBER OF PROPRIETORSHIP SCHEDULES 

208 HM 21 TSAMP TAX MODEL SAMPLE CODE 

209 MM 22 TXBAL TAX BALANCE CODE 

210 WM 23 TXST TAX STATUS corx 

211 MM 24 PUhCHED SELECTION AMOUNT 

2A2 rJM 25 *******+*CO~FIDENTIAL*******t* 

IMPT 

1 

2 

4 

5 

6 

7 

8 

9 

11 

12 

14 

16 

17 

18 

19 

20 

21 

22 

a3 

24 

25 

26 

27 

136 . 137 

NOTE3: COMP = CGMPUTED 

RESV :R�SERVEO FOR FUTURE ADOITIONS 

IMPT = IHP~JTED ITEM 
TgEASLRY PERSONAL INDIVIOUAL INCOME TAX MOO�L, 27 JUN 78 7-39 

TABLE 7.4.lt DATA HECORD SPECIFICATICh FOR THE 1978 

INDIVIOUAL IfVCCHE TAX RETLRN 

HALF-SAMPLE; MAPPED AND POCKED 

21,: YM 26 *+********CONFIDENTfAL*********** p38 

21U HM 27 +*********CONFIDENTIAL+************* 180 

CGNFIDENTZAL 

215 PM 28 *****~*****CONFfDENTIAL************ 181 

CONFIOENTIAL 

216 PM 29 **+*****CONFIOENTIAL*****r** 

217 MM 30 **CCNFIDEhTIAL*** 

218 MM 31 ***CONFIOENTIAL*** 

219 CM '32 *****COhFIOENTfAL****** 

220 MM 33 TAXPAYER'S AGE IN 1975 

221 IWM 3U *****COhFIOENTIAL****** 

222 PM 35 *****CONFIDENTIAL***** 

223 MM 36 ********CGNFIOENTIAL******** 

224 IrM 37 ********CONFIOENTIAL********* 

.................... 22s MM 38 ******I CO~FIOtNfLAL** +********+** 

**CONFIDENTIAL** 

226 MM 39 **CUNFIDENTIAL* 

227 F(M 40 **CClNFIOEhTIAL** 

228 CM 41  CONFIDENTIAL** *** 

229 HM 42 spausm AGE IN 197s 

230 PM 443  CUNFIOENTiAL** *** 

231 luM 44  CONFIDENTIAL** ** 

232 MM 45 *******CONFID�NTIAL******* 

233 MM 46 +******CO~FID�NTIAL***c***r 

******e************* 

234 MM 47 **********CaNFIOENTIALt********** 

**CGNFIDENTIAL** 

NOTES: COMP = COMPUTED 

182 

183 

184 

185 

186 TAGE 

187 

188 

169 

190 

191 

192 

193 

194 

19s SAGE 

196 

197 

198 

199 

200 

RESV :RESERVED FOR FUTURE AODITIONS 

lMPT = IMPUTED ITEM ~~w~mmw~w0m~w~w~ww0~~ww~mwmm~wwwwmw~w~w0~~~ww0wwmmwm~~w.w
TREASbffY PERSONAL LIvOIVIOUAL INCCME TAX MODEL, 27 JUN 78 2-40 

2.5, 1975 MERGED SI� 8 SO1 SAMPLE8 MAPPED 8 PACKED, 

Z,f,l, A SHORT DESCRIPTION, 

ThE 1975 MERGED FILE WAS PRODUCED FROM THE 1975 TREASURY PERSONAL 

TAX MCOEL AN0 A 'TRIMr PROCESSED VERSLON QF WE 1975 SI�, THIS 

SAMPLE COIvTAINS 126,663 RETURNS, THE MERGIkG METHBDQbOGY WAS 

STATISTICAL RAThER THAN EXACT, AND THE PROBLEP HAS OONSTRAINED BY 

THE urE.IGHTS AT THE RECORO LEV�L, THE PRO8LEM bAS DIVEDED IkTU SIX 

SbB=PRCBLEMS BASE0 UPON GEOGRAPHICAL LOCATIUN SO THAT EACH 

SEPARATE PROBLEM kOULD EASILY FIT THE SITING DIMENSEONS 1CF THE 

THEASURY SOFTWARE. 

FACTORS uaEo FOR MEAGING INCLUDED AGE, RACE, SEX, TAX scnmw, 

NUMtlER OF EXEMPTIONS, AGI, WAGE3 AN0 SALARfES, BUSINE33 INCOME, 

AND PRCPERTY INCOME. RECOROS IN THE SI� ffLE kHICH WERE NOT 

LINKEC TO 301 RECORDS kERC CLASSIFIED AS THE NCN-FILING 

POPULATION, THE EtON-FILING POPULATION hITH QhLY FEW EXCEPTIONS, 

CONSISTED OF POTENTIAL TAX RECORDS WITH LITTLE OR NO AGI 118 

OEFINED ay CURRENT LAW, 

THE 1975 MERGED FILE PRGDUCES STATISTICS IN CCNPORMITY kIfH SLE 

AND ThE 1975 TAX MODEL, THE PREVXCUS PRO6LEw !OF TRUNCATLON OF TI'� 

hEICWT3 ON INDIVIDUAL RETURNS HAS BEEN CORRECTED SO THAT ALL 

NEIGhTS ARE CARRIED TO A DECIMAL ACCURACY OF ICkE THIRD, 

DIFFERENT SAMPLING PROCEDURES WERE U3EO TO SELECT THE TAX MOOEL 

AN0 THE SIE, AS A CONSEQUENCEr RECORO SPLITTI~G I3 REQUIRED FOR 

THE MERGED FILE TO BE STATISTICALLY CONSISTENT WITH EACH OF THE 

FILES FROM HHICH IT CAME, 

2,5,2, SAMPLE COUNTS AND WEIGHTS. 

TABLE toSol PRESENTS THE SAMPLE CODES, SAMPLE STRATUHp AND THE 

NUMBER OF R�TURNS LN EACH STRATUM FOR THE 1975 MERGE SAMPLE. 

UNLIKt THE EARLIER TAX RETURN SAMPLES, THIS SAMPLE HAS DIFFERRING 

w�IGHTJ FUR EACH RETURN DUE TO THE MERGE PRCCESS EMPLOYED TO 

CREATE THE SAMPLE, HOWEVER, THE hEIGHTS STILL SUM To PROOUCE THE 

SAME hATIUNAL ESTIPATES THAT ARE PRODUCED 8Y THE 197s 301 ALONE, 
TREASURY PERSONAL INDIVIDUAL INCOME TAX HODEL, 27 JUN 78 2-4 1 

TABLE 2,501: CODES, STRATUM, AND NUMBER [OF

RETURNS FOR THE 1975 MERGE0 IhDIVIDUAL 

INCCHE TAX RETURN FULL-SAMPLE 

NCh-8USIhESS AND FARM(SCHEDULE 

F ONLY) AGIi OEFICITi OR LSII 

11 UNDER S l010OO 38,861 

12 5 10,000 UhOER 9 15,000 113,170 

1.3 9 lft000 UNDER 3 79,000 101077 

14 

15 

16 

S 20,000 UNOER J SOtOOO 

$ 50,000 UhOER 31001000 

SlOOiOOO UNDER 9200,OOO 

24,188 

4,508 

2,021 

17 

18 

$tQOt000 UNDER SS00r000 

$200,000 AND OVER 

1 c L31 CClvLY TAXABLE) 

149 (CNLV NOh-TAXABLE) 

19 3500rO00 AN0 OVER 1,654 CClvLY TAXABLE) 

EUSINESSCSCHEDULE C 8 F OR C 

ONLY) AGIr D�FICIT OR L3II 

21 UNDER S 101000 at049 

22 s 10,000 UNO�R s 15,000 1 I 706 

a3 

24 

$ 1SrOOO UNDkR S 20,000

S 20,000 UNOER S 30,000 

1,498 

2,171 

25 

26 

S 30,000 UNOER S 5OiOOO 

S SO1000 UNOER SlOOrOOO 

2,1384

1r8b8 

27 ~100~~00 UNOER 3200r000 811 

28 S700,OOO UhOER 9500,000 586 6ttuLY TAXABLE) 

29 $2OOeOOO AN0 OVER 103 CCNLY NON-TAXABLE) 

30 S5OOtOOO AND OVER 1, t30 CCNLY TAXABLE) 

0 NON-FILING RETURN3 16,598 

2*So?o DATA RECORD SPECIFICATION, 

EVERY DATA RECCRO IN THE TAX SAMPLE REPRESEhTS ONE IPJOIVIDUAL 

INCOVE TAX RETURN THAT HAS BEEN MAtCH�D NITH ChE SIE RECCRO 
TREASURY PERSONAL IhOIVIDUAL INCOPE TAX MOOEL. 27 JUN 78 2-42 

CUNTAIIvING SC?CIO*�CUNOVIC DATA, EACH RECORO CCNTAINS 265 DATA 

ITEMS (THE ORIGINAL 200 DATA ITEMS FROM THE SCI, TH� 34 OATA IT�MS 

APPkkDE5 TO THE 301 FOR USE BY ThE TAX MOOEL AN0 31 SIE-tTRIM' 

GENERATED OATA ITEMS]. TABLE 2.5,Z PROVIDES P CCMPLETE RECCGO 

SPECIFICATION OF ALL ThE OATA ITEMS MEhTIUhED AWVE, 

THE USER hILL NOTE ThAT THIS SAMPLE COhTAIhS PtRE THAN ChE WEIGHT, 

ThE CCRRECT kEIGHf TO EMPLOY IS DATA ITEM DD(1). 

THE USER SHOULD ALSO NOTE THAT DATA ITEM MM(f7) CONTAINS A 0 OR A 

1 TO IHOICAlE ThE FILING STATU3 OF TH� RETURh, IF MM(571 CONTAIN3 

A 1, THE R�TURN IS A FILING RETURN, OTH�RhI$E THE RETURh 19 A 

NON~FILINGRETURN, 

A&NE BEAG$MAN, 'O�SCRIPTION OF TRIM SI� FILE bT TREASURY', MEMO OF 

NOVEMBER 7, 1977e(SUPPLY V�RY LIMITED) 

RICHARO BARR, 'COHPARITIVE STATISTICS F-GR 1925 SGI AND $I� DATA 

FILE$', DRAFT WORRIhG PbPERt APRIL 1,1978, 
47 

TREASURY PERSONAL INOIVIDUAL INCOhE TAX MODEL, 27 JUN 78 2-43 

TABLE 2e5.2: DATA RECORD SPECIFICATIGh FOR THE 1975 

MERGE0 Ih(OIV1OQAL INCOME TAX RETURN 

FULL-SAMPLE; MAPPED AN0 PACKED 

m~~~m~~~~m~~~mmmom~m~m~m~~m~~~"mmmm--~-~-~~mmm

FIELD ARHAY ---KEFEffEhCE---

SEQ NAME DATA ITEM DESCRIPTION bhMAPPEO EGUfVNUS 8 NO SOURCE ALENT 0~~~~~~~~~~m~~m~"m.~om0.m~~~m0-m0~~m~~mm~m"~m

1 )r 1 CONSECUTIVE RETURN NUMetR COMP RETNO 

2 M 2 MARS MAHITAL STATUS COO� is CARS 

3 )r 3 FDED FORM OF DEDUCTION CODE 10 IDEOX 

4 )r 4 CSAMP COMPUTED SAMPL~CCOE $1 PCODE 

5 H 5 PRESENT LAW AGI CLASS CODE COMP JY 

6 tr 6 F4972 FORh 4972 CODE t3 F4972 

7 C 1 TAXPAYER EXEMPTIONS 29 TXPYE 

a D z AGE EXEMPTIONS 30 AGEDE 

9 o 3 emo EXEMPTIONS 31 0LNDE 

10 0 4 DEPE1JDENT ExEMPTIONQ 332 CEPNE 

11 o 5 CHILO AT EXEMPTIONS 33 CAHE 

12 0 6 CHILO AkAY FROM HOME EX�MPTIONS 834 CAFHE 

b3 C 7 WAGES, SALARIES; ETC, 139 WAS 

14 0 8 DIVIDENDS, GROSS OIVIDENOS 40 GO 

15 0 9 DIVIDENO EXCLUSION COMP OEXCL 

16 0 10 DIVIOENOS, BALANCE IN AGI 41 TAX0 

17 0 11 ALL INCOME OTHER THAN DIVIDENDS Ab0 COMP RESID 

CAPITAL GAINS IN AGI 

18 0 12 AOJUSTMENTS TO INCOME, SICK PAY 66 SICKPY 

19 0 133 TOTAL 3TATUTORY ADJUST~ENTS 43 hDJUST 

20 0 IU +- ADJUSTED GROSS INCGME OR DEFICIT 44 hGIX 

21 0 15 INCCME TAX BEFORE CREOITS 45 TAX8 

22 0 16 PERSONAL EX�MPTION CREDIT 44 EMCRX 

23 0 17 CREDffSi TOTAL COMP TXCRD 

LU D 18 TENATIVE TAX AFTER CREDITS COMP TTAXA 

74 TINCX 

25 0 

26 0 

19 OTHER TAXES, MINIMUM TAX 

20 OTH�R TAXES, SUllTOTAL EXCLUOING 

a4 

COMP 

PINTAX 

GTHERT 

MINIMUM TAX 

27 D 21 INCLHE TAX AFTER CREDITS TAXAX 

28 0 22 EARNEO INCOME CREOIT 51 EICX 

29 0 23 TOTAL DEDUCTIONS 72 ox 

30 0 24 EXEMPTIUNS AMOUhT EXEM 

31 0 25 TAXA8LE INCGME 7+3 32 0 26 TAX SAVINGS FROM INCOME AVERAGIhG COMP AVESAV 

33 D 27 CAPITAL GAIhS DISTRI8bTION 58 CGDSO 

NOTES: COMP t COMPUTE0 

RESV s RESERVED FOR FUTURE AOOITIOhS 

IVPT = IMPUTED ITEM ~~~~~~1mmm.m~.m~~~~~.~~mm~~m~~-~~~~m~m~m.m~~m~m
TREASURY PERSONAL IhOIVIOUAL INCOME TAX MODEL, 27 JUN 78 2-44 

TABLE 2.5.2: DATA RECORO SPECIFICATEON FOR THE 1975 

MERGED INOIVIOUAL INCOM� TAX RETURN 

FULL-SAMPLE; MAPPEO AND PACKED 

34 0 28 FULLY TAXABLE PENSIONS AND ANNUI- 61 FTPEN 

TIE3 

35 D 29 PEN$IONS AND ANNUITIES, TAXABLE 130 PTPEN 

PORTION 

36 0 30 MEDlCAL AN0 DENTAL EXPENSESp 96 8M IP 

BALANCE OF INSURANCE PReMIMUMS 

37 0 31 CONTRIBUTIONS, TOTAL 111 Dkl 

38 D 32 INTEREST EXP�NSE, HOME MORTGAGE 106 HMIE 

39 0 33 INTEREST EXPENSE* aiw CaMP CIE 

40 D 34 INV�STHENT INCOME COMP LNVY 

41 0 35 PERCENT NON-BUSINESS COMP PhB 

42 0 336 INEREST EXPENSE, TOTAL 107 CNt 

43 0 37 TAXESl TOTAL 105 ON3 

44 0 .30 MEDICAL AN0 DENTAL EXPENSESp 94 Oh4 

MEDICINE AhD ORUGS 

45 b 39 MEDICAL AN0 DhNTAL EXPENSES, COMP Dkf 

HEOICAL AND O�NTAL 

46 0 40 MEDICAL AND DENTAL EXPENSES, FULL COMP ON6 

MEDICAL INSURANCE PREMIUMS 

47 C 41 MISC, OEOUCTIONS, ALIMONY PAID 113 ALIMNY 

48 0 42 M1SC. OEDUCTIONS, CHILD AN0 115 CHILDC 

DEP�NDENT CARE 

49 0 43 MISCe DEDUCTIONSt TOTAL 117 ON7 

50 0 44 NET CASUALTY OR THEFT LOSS 112 Oh8 

51 0 45 +-SHORT-TERM GAINS OR LOSSESp NET COMP STGL 

ST GAIN OR LOSS BEFORE CARRYOVER 

52 0 46 $h@RT-TERM GAINS OR LOSSESt PRE- COHP P7OSTC 

1970 SHURT-TERM CAPITAL LOSS CARRVCVCR 

33 0 47 SHORT-TERM GAINS OR LOSSES, POST- COMP P69STC 

1969 SbORT-TEHM CAPITAL LGSS CARRYCVE 

54 D 48 +- SHORT-TERM GAINS OR LOSSESr BET COMP NSTGL 

3T CAPITAL GAIN OR LOSS AFTER CARRY 

55 0 49 LONG-TERM GAINS OR LOSSES, NET LT COMP LTGL 

GAIN OR LOSS BEFORE CARRYOVER 

f6 0 50 LONG-TERM GAINS OR LOSSES, PRE-1970 121 P70LTC 

NOTES: COMP s CGMPUTEG 

HESV :: RESERVED FOR FUTURE ADOITIONS 

IMP1 = IMPUTED ITEM 
LCIVG-TERM CAPITAL Lass CARRYOVER 

57 0 51 LONG-TERM GAIhS OR LOSSES, POST- 122 

1969 LOEtG-TERM CAPITAL LOSS CARfiYGVER 

58 0 52 +- LONGwTERM GAIN3 OR LOSSES, NET COMP 

LONG-TERM GAIN OR LOSS AFTER CARRWVEH 

59 I: 53 NET CAPITAL GAINS OR LOSSES COMP 

00 C 54 EXCLUDED LONG TERM CAPITAL GAIN3 CGMP 

61 0 55 CAPITAL GAIhS OR LOSSES IN AGI COMP 

AFTER LfMITATlON 

02 0 56 TAX SAVINGS DUE TO ALTERNATIVE TAX COMP 

03 0 57 LONG-TEHM GAIkS FROM IhSTALLMENT 127 

$ALE3 

64 D 58 LONG-TERM CAPITAL GAINS SHELTEREO COMP 

UNDER THE ALTERNATIVE TREATMENT 

65 0 59 COPPUTATIQN OF HIN, TAX, PREFERENCE COMP 

IhCOME NET OF CAPITAL GAINS 

66 D 60 CUMPUTATION OF MIN, TAX, TOTAL ITEP 152 

S GF TAX PREFERENCES 

67 0 61 COMPUTATION OF MIN, TAX, GTHER COMP 

TAXES REOUCTING PRE:FERENC� INCCPE 

68 0 62 COMPUTATION OF MIN, TAX, 1975 NET 155 

OPERATIRG LCSS CARRYOVER 

b9 0 63 CQMPUTATIQN CF MIN, TAX, MIhIMUM 156 

TAX OEFERREO FROM PRIOR YEARCS) 

70 D 64 COMPUTATION OF MIN, TAX, UNUSED 157 

CREDITS 

71 0 65 MAX TAX ON EARNEO INCOME, TAX COMP 

SAVINGS FROM MAXIMUM TAX 

72 0 66 MAX, TAX Oh EARNED INCCWE, EARNEO 159 

INCOME 

73 0 67 MAX, TAA ON EARNED INCOME, 160 

OEOUCTICNQ 

74 D 68 HEIGHT 28 

75 0 69 TOTAL EXEhPTIQNS 135 

76 0 70 INTEREST INCOME- 42 

P69LTC 

hLTGL 

hGL 

EXLCG 

CGbGIX 

ACTTAX 

LTGIS 

CGYAX 

PREFI 

PREFX 

'CTRP 

t4CL75 

MTOPY 

UNCRS 

MAXTAX 

EARN 

AOJEI 

h 1, 

NOTE3: COW o COMPUTED 

RESV t RESERVED FOR FUTURE ADOITIONS 

IMPT t IMPUTED ITEM 
, 

TREA$URY PERSONAL INDIVIDUAL INCCME TAX WDEL, 27 JUN 78 2-46 

TABLE 2.5.2: DATA RECORO SPECIFICATION FOR TkE 1975 

M�RGED INQIVIOUAL INCOME TAX RETUHh 

FULL-SAMPLE; MAPPED AND PbCKED 

~~w~wmmmm~~m~~w.~--mww~ow~mm~~m~momm--m-o-~w~ww-wwmwmmw~*ww~ 

FItLD ARRAY ---REFERE~CE---

SkQ NAPE DATA ITEM DESCRIPTION LhMAPPED ECUIVbus 8 tu0 SOURCE ALENT o~~~~~~~m~mw~w~~m~w~m~w~wwwom~~wwm~~~mw~ww

77 0 71 INCOME TAX bITHtlELD 49 

78 0 72 1975 ESTIMATED TAX PAYWEkTS 50 

79 0 73 AMOUNT PAID kITh FORM 4868 52 

80 0 7U TAX DUE AT TIME OF FILING 53 

61 0 75 OVERPAYNEkT, REFUND 54 

clt 0 76 OVERPAYPENT, CR�DIT TO 1976 55 

ESTIMATED TAX 

83 0 77 TAX PAID WITH RETURN 56 

84.0 78 +- BUSINESS INCOM� OR LOSS 57 

85 D 79 SUPPLEMENTAL SCHEDULE, hET CAIN'CR 59 

NET LOSS 

86 C 80 PENSION$, RENTS, ETC., INCOME OR 60 

LOSS 

87 C 81 +- FARM INCGME OR LO33 62 

88 0 82 STATE IhCOME TAX REFUNDS 63 

89 0 83 ALIMONY INCCME 64 

90 0 84 +- OThER INCQME OR LO39 65 

91 0 85 ADJUSTMENT'S TO INCOME, MOVING 67 

EXPENSES 

92 0 86 ADJUSTMENTS TO INCOME, EMPLGYEE be 

BUSIE(ES3 EXPENSES 

93 0 87 AOJUSTMENTS TO INCOME, PAYMENTS IC 69 

A K�OGH RETIREMENT PLAh 

94 0 88 ADJUSTMENTS TU INCOME, PAYMENTS fC 70 

INDIVIDUAL RETIREMEFtT ACCOUNT 

95 D 89 ADJUSTMENTS TO INCOME, FORFEITED 71 

INTEREST PENALTY 

96 D 90 CREDITS, RETIREMENT INCOME 7s 

97 0 91 CREDIfSi INVESTMENT 76 

98 0 92 CREDITS, FOREIGrJ TAX 77 

99 o 93 CREOITS~ CONTHIBUTIONS TO CANDIGATE 78 

100 0 94 CREDITS, hOAK INCENTIVE t9 

101 0 95 CREDITSF PURCHASE OF NEk RESIDENCE 80 

IU2 D 96 CREDITS, OTHER TAX CREDITS 81 

103 C 97 OTHER TAXES, RECOMPUTED PRICR YEAR ai! 

NOTES: COHP :COMPUTED 

RESV = RESERVEC FOR FUTURE ADDITrCNS 

IMPT = IMPUTED ITEM ~~ww*mw~w~mwmm-~-~m~mm~w~~m~~~~~wmm~mmww-~omm
TREASURY PERSGNAL INDIVIDUAL INCOME TAX MODEL. 27 JUN 78 2-47 

TABLE 2.5.21 OATA RECORD SPECIFICATIsCN FOR THE 1975 

MERGE0 INOIVIOUAL IhCChE TAX RETURN 

FULL-SAMPLE; MAPPED AN0 PbCKEO 

~ ~ ~ W ~ ~ ~ I ~ ~ ~ ~ ~ ~ ~ m ~ ~ ~ ~ ~ ~ 

FIELO ARRAY --=REFEREkCE---

SEQ hAME OATA ITEM DESCRIPTSON ChiMAPPEo EQttIVNUS 8 NO SGURCE ALENT ~m-~~m~"~~ooo-~~m-~~o~~mo-~~~mmm~~mmmwm~~mo~m

INIlCSTHENT TAX CR�DIT 

104 D 98 OThtR TAXES, RECOMPUTED PRIOR YEAA 83 

WIk CREDIT 

105 0 99 CThER TAXES, TAX ON PREMATURE 85 

DISTRIBbTIOhS (FORM 5329) 

106 0 100 OTH�R TAXES, SELF-EMPLCYMENT TAX 86 

107 0 101 OThER TAXES, SOCIAL SECURITY TAX Ch 87 

TIPSi UNCOLLECTED TAX 

108 0 102 CTHER TAXES, EXC�SS CONTRIBUTIChS 88 

TO AN INDIVIDUAL RETIREMENT ACCOUNT 

109 0 103 OTHER TAXES, ALL OTHER TAXES 89 

1iO D 104 OTHER TAX PAYMENTS, EXCESS FICA/RCiT 90 

A TAX WITHHELD 

111 0 105 OTHER TAX PAYMENTS, CREDIT FOR 91 

fEOERAL TAX Oh (iA30LIhE 

112 0 106 OTH�R TAX PAVMENTSi TOTAL OTHER 92 

PAYMENTS 

113 0 107 WEOICAL AN0 DENTAL EXPENSESp 112 93 

INSbRANCE PR�MIUMS 

114 0 108 MEDICAL AN0 O�NlAL EXPENSES, 95 

MEOICINE AND ORUGS IN EXCESS OF 1% 

115 D 109 MEDICAL AND DENTAL EXPENSESr 98 

M�OICAL AND O�NTAL IN EXCESS OF 

116 D 110 MEDICAL AND OENTAC Emmaear TOTAL 99 

(AFTER INCCPE LIMIT1 

119 0 111 TAXES, STATE AND LOCAL INCUMC TAX 100 

118 0 112 TAXES, REAL ESTATE 101 

119 0 113 TAX�SI STATE AN0 LOCAL GASQLINE 102 

120 0 114 TAXES, GENERAL SALES 103 

121 0 115 TAXES, PERSCNAC PROPERTY 104 

122 D 116 TAXES, OThER COMP 

123 0 tl7 CONT~IBUTlOhS, CA3H 108 

124 c 118 CQ~TRIBUTEO~VS, OTHER THAN CASH 109 

125 0 119 CONTRIBUTIUNS, CARRYOVER FROM PRICR 110 

YEAR 

NOTES: CCMP = CGMPUTED 

RESV 3: RESERVED FOR FUTUGE AODITIO~S 

IMPT = IMPUTE0 ITEM ~ ~ ~ W O ~ ~ ~ ~ ~ ~ O ~ 
. 

TREASURY PERSONAL INDIVIDUAL INCCPE TAX HODEL. 27 JbrU 78 2-48 

TABLE 2.5.2: OATA RECORO SPECIFICATLCh FUR ThE 1975 

MERGE0 INOIVIDUAL INCOME TAX RETURN 

FULL-SAMPLE# MAPPED AND PACKEO 

--w~~w~o*~ow~~---~m*~o~oom~*o~om~woo~woom~owmwwwwowoo~~

FILL0 ARRAY ---REFEREhCE---

SEQ NAME OATA ITEM DESCRIPTION LkMAPPEO EQUIVNU3 8 NO 9GURCE ALENT w~-mwo~omwm~om~~wmmo~~omwmoo~~~ooowoom~woow~~mo~w

126 0 120 CONTRIBUTIO~SI OTHER 

127 0 121 MISC, OEOUCTIGNSt UNICN DbES 

128 0 1122 MiSCo OEOUCTIONS, POLITICAL 

CUNTRI8UTIChY 

129 D 123 MISC, D~DUCTIONSI OTHER 

130 0 124 ShORToTERM CAPITAL GAfNS OR LOSS�St 

PRE~1970+PGST~1969ST CAPITAL LCSS 

131 0 125 NET LOSS BEFORE LIMITATION 

132 C 126 ALTERNATIV� TAX 

133 D 127 PEhYION3 Ah0 ANNUITIES, INCCME THiS 

YEAR 

134 0 128 +- RENTS8 hET INCOME OR NET L03S 

135 0 129 +- ROYALTIES, NET INCGHE OR NET 

LOSS 

136 0 130 PARTNERSHIPS, TOTAL INCOME 

137 C 131 PkRTNfRQHIPS, TOTAL LO35 

138 0 132 +- PARTNERShIPS, NET INCOME OR luET 

LOSS 

139 C 133 ESTATE GR TRUST, TOTAL INCGME 

140 0 134 ESTATE OR TRUST, TOTAL LGSS 

141 0 135 +- ESTATE OR TRUST NET INCOME ICR 

NET LOSS 

142 C 136 SMALL BUSIIUESS CORP,r TOTAL INCCFE 

143 0 137 SMALL BUSINESS C0RP.r TOTAL LOSS 

144 0 138 +- SMALL BUSIEiESS CORRCRATZON NET 

INCOME GR hET LOSS 

COHP 

114 

116 

COMP 

118 

COMP 

COMP 

129 

b3 1 

132 

133 

1\34 

1.35 

136 

137 

t38 

139 

140 

141 

145 C 139 SCHEDULE SE NET EARNINGS FROM SELF- 142 SEEARN 

EMPLOYMENT 

146 0 140 COPPUTATION OF MIN. TAX, ACCEL. 143 

OEPR. ON LCIU-INCOME RENTAL HOUSING 

147 C 141 COPPUTATION OF MI&, TAXI ACCEL, 144 

OEPH. aN OTHER REAL PROPERTY 

148 0 142 COMPUTATION OF MINe TAX, ACCEL, 145 

OEPR. Oh PERSONAL PROPERTY 

149 0 143 COMPUTATION OF MIN, TAXI TOTAL 146 

NOTES8 COMP = COMPUTED 

RESV o RESERVE0 FOR FUTURE AD0ITIOh.S 

IMPT 3 IPPUTEO ITEfl ~omw~w~~m~mom~~o~o~~~woo~~oo~~~~wO~~~~~~Oo
THEASURY PERSONAL IhOIVJOlrAL INCOME TAX MOOEL, 27 JUN 78 2-49 

TABLE 2'05.2: DATA RECORD SPECIFICATtCh FOR THE 1975 

MERGED INOIVIOUAL INCOPE TAX RETURN 

FULL-SAMPLE! MAPPED AND PhCKEO 

AMORTIZATION 

1SO 0 144 COMPUTATION CF MIN. TAX, STOCK 141 

CPTIONS 

151 0 145 COVPUTATION 0 MIN. TAX, RESERVES 148 

FOP BAD DEBTS

isz c 146 COMPUTATION OF MIN. TAX, DEPwIak 149 

153 0 147 COMPUTATION OF MINO TAX, CAPITAL 150 

GAINS 

154 0 148 COPPUTATION OF PIk. TAX, EXCLUSIGh 152 

155 0 149 COMPUTATION OF MIh. TAX, TAX FRCM 153 

PREMATURE 01STRIBUTIONS(9E RETIREPENTI 

156 0 150 COMPUTATION OF MIho TAX, TAX CARRYavER FROM PRIOR YEARCSI 

1'57 0 1Sl MAX. TAX ON �ARNE0 INCGME, EARNED 

NET INCOME 

158 0 152 MAX. TAX ON EARNED INCOME, TAX 

PREFEREhCES IFC EXCESS OF 93OtOOO 

159 0 153 MAX. TAX ON EARNED INCGME, ADJUSTED 

EAHNEO TAXA8LE INCOME 

16O 0 154 MAX. TAX ON EARNED INCOME, MAXIPUP 

TAX 

161 0 155 FORM 4952, INVESTMENT INTEREST^ 

TOTAL 

162 D 156 FORM 4952, INVESTMENT INTEREST, 

TOTAL NON-BUSINESS 

163 0 IS7 FORM 4952, fhVESTMENT INTEREST, 

INTEREST DEDUCTION DISALLOWED 

lbU C 158 FORM 4972, SPECIAL LUMP-SUM INGCPE 

AVERAGIhG, ORDINARY INCOME PORTIGh 

16s C 159 FORM 4972, SPECIAL LUMP-SUM INCCME 

AVERAGIhG, lO*YEAR TOTAL 

106 C 160 FORM 4972, SPECIAL LUMP-SUM INCCPE 

AVERAGING, TOTAL TAXABLE AMOUNT 

la7 0 161 FORM 4972, SPECIAL LUMP-SUM INCGME 

AVERAGIIUG, ADJUSTED TOTAL TAXABLE 

NOTES: COMP = COMPUTED 

RESV = RESERVE0 FOR FUTURE ADDITIONS 

IMPT = IMPUTED ITEM 

154 

COMP 

COMP 

COMP 

COMP 

165 IhVfT 

166 

167 

168 

169 

170 

171 

AMOUNT 
. 

THEASURY PERSGNAL IIvOIVIDUAL INCOPE TAX MODEL. 27 JUN 78 2150 

TABLE 2,S.Z: DATA RECORD SPECIFICATEGN FOR ThE 1975 

MERGE0 INOIVIOUAL INCCME TAX RETURN 

FULL-SAMPLE; HAPPED AND PACKED 

~m~mmmwmmm~o~m1~~D~~~mm~W~~~mm~Ommm~~~m~mom~~~wmm

FIELD ARRAY ---REFEREhCE---

SEQ NAP?� DATA ITEM DESCRIPTION UNHAPPCD EOUIVNO3 8 NO SCURCE ALENT ~~Oom~mo~om1mO~~~~W~oommm~m~omm~~~~m~m~ommmmo~~

168 Q 162 FORM 49721 SPECIAL LUMP-SUP I1UCCpE 172 

AVEAAGIhG, TAX UN ORDINARY XNCGME 

169 [3 163 FURM 49728 SPECIAL LUMP-SUM INCCPE 173 TSLSIA 

AVEAAGIhGt TAX FROM SPECIAL IhCOWrE 

170 C 164 FORM 49728 1974 INVESTMENT INTERE$T 176 I OflOINARY INCOME PQRTIUN 

171 0 165 FORM 49728 1974 INVESTMENT 1NTEF;EST 177 

8 TGTAL BEFCRE EXCLUSICN 

172 D 166 FORM Q9728 1974 INVESTMENT fNTEREST 178 

TGTAL TAXABLE AMOUNT 

173 Q 167 FORh 5405, C03T OF RESIDENCE 174 

174 0 168 FORM 5405, ADJUSTED BAS13 17s 

175 D 169 INVESTMENT INTEREST, IhTEREST COMP LNVIA 

EXPENSE ALLOhED, NONWBUSINESS 

176 0 170 IMPUTATIONt STATE & LOCAL BOND N*Am 

INTEREST 

177 D 171 IMPUTATXON, SHARE OF kAGE INCOME N.A, 

ATTRIBUTA8tf TO HUW3AND 

178 D 172 IMPUTATIOI~, SHARE OF WAGE INCOME N.Am 

NOT ATTRIBUTABLE TO HU38ANO'S LST JO8 

179 D 17.3 IMPUTATION, RUERVED FCR FUTURE IMPT 

A00 I T IahS 

180 0 174 COMPUTATION MIN, T4Xt 115 PREF- COMP FIFTH 

ERENCES FROM PREVIOUS 5 YEARS 

181 0 175 IMPUTATION, RESERVED FOR FUTURE IMPT 

AOOITIONS 

182 0 176 IMPUTATION, RESERVED FOR FUTURE IMPT 

ADO I TIOh3 

183 0 177 IMPUTATION, RESERVED FOR FUTURE IMPT 

AOOITIONS, 

184 0 178 IMPUTATION, SOCIAL SECURITY 8 IMP1 

RR fiETIRE,BENEFITS 

185 0 179 IMPUTATION, R�SERVED FOR FUTURE IMPT 

A00 I TIONS 

186 0 180 IMPbTATION, RESERVED FOR FUTURE IMP1 

NOTES: COMP = CGMPUTED 

RESV = RESERVE0 FOR FUTURE AODITIO~S 

IMPT f IMPUTED ITEM mmmmmmmmmmmwwm~-o~m~mm~m~~mom-~om~~oom~~oo~om~~*omwmm~wo~o
ADO 1T ION3 

187 0 181 IMPUTATION, REJERVED FCR FUTURE 

A001TIGN3 

rea MM i eFI BUSIhESS OR FARM INOICATGR 

189 MM z! 9USINO BUSIhESS INDICATOR 

190 PM 3 CSELI CORRECTED. SELECTION ITEM 

CODE 

~ MM i u OCINO DISTRICT OF coLuneIn 

IN0 ICATliR 

192 WM 5 DEPihC 

INCCME 

193 MM 6 OGRCjUP 

194 MM 7 OIST 

195 MM 0 ELECT 

COO� 

196 MM 9 FLPO 

197 trM 10 FORM 

198 MM 11 HINTX 

RETURN 

199 IrM 12 PSAMP 

200 MM 1>3 RESADJ 

CODE 

201 CM 10 RECAEV 

202.MM AS RSHARE 

2U3 MM 16 SCHCF 

204 CM 17 9ELI 

205 CM 18 STATE 

206 IWM 19 TAXMOO 

21)7 MM 20 TNOCF 

SHIP SChEDULES 

DEPENDENT ~ITH UNEARMD 

CODE 

GROUP CODE 

DISTRICT cow 

PRESJOENTIAL ELECTION FUN0 

FILING PERIOD CODE 

FORM OF RETURN CODE 

HIGH INCOME NON-TAXABLE 

CODE 

PUNCHED SAMPLE CODE 

RESIDENCE CREOIT AOJUSTMENT 

REVENUE SHARING RE-CODE 

REVENUE SHARING COO� 

SChEDULE C OR F INDICATOR 

SELECTION ITEM COO� 

STATE CODE 

TAX MODEL CODE 

TOTAL NUMBER OF PROPRIEPCR1mp1 

1 

2 

4 

5 

6 

7 

8 

9 

11 

12 

14 

16 

17 

ia 

19 

20 

21 

22 

a3 

24 

25 

26 

27 

if 6 

'37 

208 CM 21 TSAMP TAX MODEL SAMPLE COO� 

209 MM 22 TXBAL TAX BALANCE CODE 

210 MM 23 TXST TAX STATUS CODE 

211 MM 2U PUhCHED SELECTION AMOUNT 

212 MM 25 ******~**COhFIDENTIAL********** 

NOTE8: COMP :COMPUTED 

RESV :RESERVEO FOR FUTURE AOOI~IONS 

IMP1 :: IMPUTED ITEM 

i 
TREASURY PERSONAL INDIVIDUAL INCOME TAX MOOEL, 27 3UN 78 2-52 

TABLE 2,502t DATA RECORD SPECIFICATLON FOR THE 1975 

MERGED INOIVIDUAL INCOME TAX RETURN 

FULL-SAMPLE; MAPPED AN0 PACKED 

FIELD ARRAY ---REFERENCE---

3EQ NAME DATA ITEM DESCRIPTEON UhMAPPED EQU.I:VNOS & NO SOURCE ALENT 

2&3 fSi~ 26 ******+*r*CeNFfDENTIAL********** 138 

2lU WM 27 **********CONFIDENfIAL*****r*t********~ 180 

CONFIDENTIAL 

915 MM 28 ******+ CONFIDENTIAL** ********** 181 

CONFIDENTIAL 

216 MM 29 *******rCGNFIDENTIAL******** 182 

217 WM 30 **CONFIDENTIAL*** 183 

218 FCH 31 ***CONFIDENTIAL*** 184 

219 MM 32 *****CONFIDENTIAL****** 185 

220 nM 33 *****CONFIDENTIAL***** 186 TAGE 

221 MM 34 *****CONFID�NTIAL****** 187 

222 FCM 35 *****COkFIDENTIAL***** 188 

2d3 MM 36 ********CONFIDENTIAL******** 189 

224 MM 37 ********CONFIOENTIAL**t*+******* 190 .................... 225 MM 38 ***********CONFIDtNTIA~**********~ 191 

**CGNFIDENTIAL** 

226 MM 39 **CONFIDENTIAL* 192 

227 PM 40 **CWFIDENTIAL** 193 

228 PM 41  CtlNFIOENTIAL** *** 194 

229 MM 42  CONfIDEfvTIAL** ** 195 SAGE 

230 WM 43  CONFIDENTIAL** *** 196 

231 MI4 44  COHFIDEhTIAL** ** 197 

232 MM 45 *******CONFIDENTIAL******* 198 

233 WM 46 *******CONFIDENTIAL******** 199 ******************** 

234 HM 47 **********CCNFIDEN?IAL*****tr  a00 

** CONFIDENTIAL** 

235 MM 48 TRIM RECORD SEQUENCE NUMBER 

236 MM 49 MATCHED TAX A�CORO IO 

237 MM SO VERGE N�IGHTI INTEGER 

NOTES: COMP = CGMPUTED 

RESV :RESERVE0 FOR FUTURE ADDITIOluS 

IMPT IMPUTED ITEM 
TREASURY PERSONAL IhDIVIDUAL INCOME TAX MOQEL. 27 JUN 78 2-52 

TABLE 2.5*2! DATA RECORD SPECIFZCATECN FOR THE 1975 

MERGED INOIVIDUAL INCOME TAX RETURN 

FULL-SAMPLE1 RAPPED ANG PPCKEG 

238 MM 51 SIZE OF FAMILY TO WHICH TAX UNIT FMSIZE 

BELONGS 

239 PM 52 SI� STATE cam 3TATE 

240 Mfl Sf TENURE hMSTAf 

241 MM 54 FILING UNIT SIZE ma2 

242 MM 55 TRIM SCHEDULE CODE JSChED 

243 PM 56 DEPENDENT STATUS CODE 13PNT3T 

244 MM 57 FILER/NON-FILER CODE F ILCOD 

245 OD 1 MERGE HEIGHT FLOATING POINT WTMEAG 

246 DO 2 ADJUSTED FAMILY TOTAL IhCOME CFTINC 

247 DO 3 ADJUSTED HOUSEHOLO TOTAL INCOME CHTINC 

248 00 4 YEARLY FOOD STAMP EONUS VALUE FSYEAR * 

(FOR UNIT MITH MEA0 OF HOUSEHOLD) 

249 00 5 VETERANS 6ENEFITS me 

250 OD 6 ADJUSTED GOVERNMENT PEN3ION3 (SUMCED GPNSZ 

OVER TAX UNIT) 

251 OD 7 ADJUSTED PRIVATE PEN8ZON3 PPNSZ 

(SUMMED OVER TAX UNIT)

252 OD 8 ADJUSTED bORKflENS COflPEh3ATION kRKC2 

(SUMMED OVER TAX UNIT)

253 OD 9 ADJUSTED UNEMPLOYMENT COMPEhSATPGN UNMCZ 

(SUMMED ObER TAX UNIT)

254 DO 10 ADJUSTED 3OIAL SECUHITY AN0 RAILROAD H�TIREMENT INCOME 

255 DO 11 SIMULAT�O PUBLIC ASSISTANCE WELF2 

(SUMMED OVER TAX UNIT FOR PA PARTI* 

CIPANfSl 

256 00 12 FILING UNIT WAGES kAGES 

257 GO 13 HEAD'S h4ARe OF WAGES HkAGES 

258 GO 14 FILING UNIT SELF-EMPLOYED NON-FARP SfNP 

259 00 15 HEAOS 9hARE OF 3ENF HSENF 

260 OD 16 FILIN UNIT SELF-EMPLOYED FARM INOOM SEF 

261 DO 17 HEAO HAARE Of SEF hSEF 

NOTES; CUMP :COMPUTED 

RESV f RESERVED FOR FUTURE ADOlTIOFiS 

IMPT = IMPUTED ITEM 
TREASURY PERSONAL INOIYIOUAL INCOME TAX MODEL, 24 JbN 78 2154 

TABLE 2eS.ZI DATA RECORO SPECIFICATICN FOR THE 1945 

MERGE0 INOIVIOUAL INCGME TAX RETURN 

FULL-SAMPLE1 MAPPED AN0 PACKED 

262 00 18 SOCIAL SECURITY AN0 RR RETIREMEIvf HOSOTX 

DISA~XLITYAN0 SURVIVOR EMPLOYEE TAX 

263 00 19 OSOTX+RHTX FOR NIFE ONLY motx 

(264 00 20 SOCIAL SECURITY 8 RR RETIffEVENT HSSHTX 

HEALTH INSUffAhCE EMPLOYEE TAX FCR 

HEAO ONLY 

to5 DO 21 $SHTX+t?RHTX, FOR WIFE ONLY WS3HTX 
TREASURY PERSONAL INDIVIDUAL INCCPE TAX MODEL, 27 JUN 78 2-55 

2,6, 1978 MERGED SI� 8 SO1 SAMPLE: NAPPED ANC PACKED, 

2,,6,1, A SHORT DE8CRIPTION. 

THE 1978 MERGED SI� 8 901 SAMPLE IS A CCMPOSITE FILE GEhERATED 

FROM TvrO INOEPENoEkT SOURCES A3 Ha3 THE CASE hITH THE 1975 MERGE 

FIL�, THIS SAMPLE CONTAINS 124~663RETURNS. 

THE $01 PORTION OF EACH RETURN HAS BEEN EXTHAPOLATEO 70 1978 LAW 

AN0 tE\IELS IN THE SAME MAhNkR AS THE 1978 HALF-SAflPLEe IT IS 

ThEHEFCREi E3SENTIALLY ThE 1978 HALF-SIMPLE BLT kITH SPALLER 

*EIGHT3 THAT RESULT FROM RECORD SPLITIFtG DCIGIhG THE VERGE PROCESS, 

THE SIE PORTION OF EACH RETURN HAS BEEN EXTRAPCLUED ta 1978 LAW 

AND LELELS BY A SEP�RATE METHOOOLCGY, THIS M�THODObCGY 

EXTRAPOLATES THROUGH THE 'TRIM' MOOEL IN OROfR TO ACCOMOOATE 

CHANGES IN PROGRAMS ThAT EFFECT TRANSFER PAYYENTS, 

2,6,2, SAMPLE COUNTS AhD WEIGHTS, 

UNLIKE THE EARLIER TAX RETURN SAMPLES, THIS SAMPLE HA$ DIFFERRING 

WEIGHTS FOR EACH HETURN DUE TU TH� MERGE PRCCESS EMPLOYED TO 

CREATE THE SAMPLE, HOkEVERt THE hELCHTS STILL SUM TO PRCDUCE THE 

SAME NATIONAL ESTIMATES THAT ARE PRODUCED BY THE 1978 9CI ALONE, 

2.6.3, OATA RECOHO SPECIFICATIONS, 

EVERY DATA RECORD IN THE TAX SAMPLE REPRESErUTS U)uE INOIVIDUAL 

INCOME TAX RETURN THAT HA3 BEEN MATCHED WITH GNE $I� RECCRO 

CONTAINING SOCIG-ECONOMIC DATA, EACH RECORO CCNTAINS 265 OATA 

ITEM3 (ThE OAlGINAL 200 DATA ITEMS FROM ThE SCI, THE 3U DATA ITEMS 

APPENUEO To THE SOX FaR USE BY T~ETAX MODEL PND 31 SIE-~TRIW 

GENERATED OATA ITEMS, TABLE 2.6.1 PRGVIDfS A COMPLETE RECORD 

SPECIFICATION Of ALL THE OATA ITEflS MENTIQNEO ABOVE, 

THE USER kILL NGTE THAT THIS SAMPLE CONTAlNS PCR� THANGNE W�IGHT, 

THE CGRAECT WEIGHT TO EMPLOY IS DATA ITEM DD(1). 

THE USER SHOULO ALSO NOTE THAT DATA ITEM MM(S7) CONTAINS A 0 OR A 

1 TO INDICATE THE FILING STATUS OF THE RETURh, IF MM(S71 CaNlAfNS 
. 1 

Twaw PERSONAL INDIVIDUAL INCOME TAX.MODEL, 27 JUN 78 2-54 

AN 01 THE RETURN I3 A FILING RETURN# OTHERWISE TbiE RETURN 13 A 

NGN-FILING RETURN, 

2.6.4, CTHER DOCUMENTATION, 

NONE AT PRESENT. 
TREASCRY PERSOkAL INOIVIDIJAL INCOkE TAX MODEL, 27 JON 78 2-57 

TABLE 206.1g OATA RECORD SPECIFICATICN FOR THE 1978 

MERGED INDIVIDUAL INCOM� RETURN 

FULL-SAMPLE; MAPPED AN0 

tM 1 CONSECUTIVE RETURN NUMeER 

2v 2 MARS MARITAL STATUS CODE 

3P 3 FDED FOAM OF DEDUCTION CCDE 

4P 4 CSAMP COMPUTED SAMPLE CODE 

5rJ 5 PRESENT LAW AGI CLASS COO� 

6H 6 FU97Z FORM 4972 CODE 

70 1 TAXPAYER EXEMPTIONS 

80 2 AGE EXEMPTICNS 

90 3 BLIND EXEMPTICNS 

10 0 4 DEPENDENT EXEMPTIONS 

11 0 5 CkILD AT HOME EXEMPTIONS 

12 c 6 CHILD AhAy FROM HOME EXEMPTrONS 

13 0 7 WAGES, SALARIES, ETC. 

14 C 8 DIVIDENDS, GRQSS DIVIDENDS 

15 0 9 DIVIDENO EXCLUSION 

16 0 10 DIVIDENDS, BALANCE IN AGI 

17 0 11 ALL INCGME OThER THAN DIVIDENDS 

CAPITAL GAINS IN AGI 

18 0 12 ADJUSTMENTS TO INCOME, SICK PAY 

19 0 13 TOTAL STATUTORY ADJUSTMENTS 

TAX 

PACKED 

cow REThO. 

15 PARS 

10 IOEEX 

13 MCOCE 

COMP JY 

1b3 F 4972 

29 TXPYE 

130 AGEDE 

31 8LNDE 

+32 DEPNE 

t33 CaHE 

334 CAFHE 

t39 ha§

40 GD 

COMP nExcL 

41 TAXD 

AND COMP RESID 

66 SICKPY 

43 ADJUST 

20 0 14 t- ADJUSTED GROSS INCOME OR DEFICIT 44 hGIX 

21 0 15 INCOME TAX BEFORE CREDITS 45 TAX8 

22 D 16 PERSONAL EXEMPTION CR�DfT 46 EMCRX 

23 0 17 CREDITS, TOTAL COMP TXCRD 

24 0 18 TENATIVE TAX AFTER CREDITS COMP TTAXA 

25 0 19 OfH�R TAXES, MINIMUM TAX 84 MINTAX 

26 0 20 OTH�R TAXES, SUSTOTAL EXCLUDING COMP lQThER1 

MINIMUM TAX 

27 0 21 INCOME TAX AFTER CREDITS 47 TAXAX 

28 D 22 EARIvEO INCOME CREDIT 51 EICX 

29 0 23 TOTAL DEDUCTIONS 72 ox 

30 0 ZU EXEMPTIONS AMOUNT 713 �XEM 

31 D 25 TAXABLE INCCM 74 T'INCX 

32 0 26 TAX 3AVING3 FROM INCORE AVERAGfhC COMP AVESAV 

33 0 27 CAPITAL GAINS DISTRIBUTION 58 CG050 

NOTE3: COMP s COMPUTED 

RESV RESERVED FOR FUTURE ADDITIONS 

IMP1 t IMPUTED ITEM 
TREASURY PERSONAL INDIVIDUAL INCOME TAX MODEL, 27 JUN 78 2-58 

TA6LE 216.11 OATA RECORD SPECIFICATtON FOR THE 1978 

MERGED INOIVIOUAL INCOME TAX RETURN 

FULL-SAHPLE1 MAPPED AN0 PPCKEO 

34 0 20 

35 0 29 

36 0 30 

37 D f31 

38 0 32 

39 0 33 

40 D 34 

41 D 35 

42 0 34 

43 D 37 

44 o 38 

45 0 39 

46 0 40 

47 0 41 

48 0 42 

49 D 43 

50 D 44 

51 0 4s 

52 0 46 

53 0 47 

54 C 48 

55 0 49 

56 0 SO 

FULLY TAXABLE PENSIONS AN0 ANNUiTIES 

PENSIONS AN0 ANNUITIEar TAXABLE 

PORT ION 

MEDICAL AND OENTAL EXPENSESi 

BALANCE OF INSURANCE PREMIMlrNS 

CONTRIBUTfONS, TOTAL 

INTEREST EXPENSE, HOME MORTGAGE 

INTEREST EXPEhSEr OTHER 

INVESTMENT INCOME 

P�RCENT NON-BUSINESS 

INTEREST EXPENSE, 

TAXfSi TOTAL 

MEDICAL AND OENTAL 

M�OICLNE AN0 ORUGS 

MEDICAL AND DENTAL 

MEDICAL AND DENTAL 

MEDICAL ANO DENTAL 

PEDICAL INSURANCE 

MISC, OEDUCTIGNS, 

MISC. OEO~JCTIONSI 

DEPENDENT CbRE 

MI$C. DEDUCTIONSI 

TOTAL 

EXPENSES, 

EXPENSES, 

EXPENSESt FULL 

PREMIUMS 

ALXWNY PAID 

CHfLO Ah0 

TOTAL 

NET CASUALTY OR THEFT Loss 

+-SHORT-TERM GAINS OR LOSSES, NET 

ST GAIN OR Loas BEFORE CARRYOVER 

SHOGT-TERH GAINS OR LOSSESr PRE61 F TPEN 

b30 PTPEN 

96 BlJIP 

111 Oh1 

104 kFIE 

COMP CIE 

COMP IhVY 

COMP FhB 

107 ON2 

10s Oh3 

9u ON4 

caw ON5 

COMP DN6 

113 ALIPNY 

115 CHILOC 

117 ON7 

112 ON8 

COMP STGL 

COMP P709TC 

1970 SHORT-TERM CAPITAL Luss CARRYCVER 

SHORT-TERP GAINS OR LGSSES, POST- COMP P69STC 

1969 SHORT-TERM CAPITAL LOSS CARRVOVE 

+- SWRT-TERM GAINS OR LOSSES, NET CGMP hSTGL 

ST CAPIT4L GAIN OR LOS3 AFTER CARRY 

LONG-TERM GAINS OR Loasu, NET LT COMP LTGL 

GAIN OR LOSS 8EFORE CARRYOVER 

LONG-TERM GAIN8 OR LOSSESr PRE-1970 121 P7OLTC 

NOTES: COMP t CGMPUTEO 

RESV = RESERVE0 FOR FUTURE AODITIOhS 

IMPT 0 IMPUTE0 ITEM 
TREASUR! PERSONAL IhOIVIDUAL INCCME TAX MOOEL, 27 JUN 78 2159 

TABLE 2*6*1: DATA RECORD SPECIFICATLCN FOR THE 1978 

MERGED INUIVIOUAL INCGPE TAX RETURN 

FULL-SAMPLE; MAPPED Ah0 PACKED 

LONG-TERM CAPITAL LOSS CARRYOVER 

57 c 51 LONG-TERM GAINS OR LOSSES, POST- 122 PbSLTC 

1969 LOIvC-TERM CAPITAL LOSS CARAICVER 

58 0 52 +- LONG-TERM GAINS OR LO~SESI NET COMP bLTGL 

LONG-TERM GAIN OR LO33 AFTER CAHRYCVER 

59 c 53 NET CAPITAL GAINS OH Lcsm COMP EtGL 

bo 0 54 ExCLUOfD LOhG TERM CAPITAL GAINS COMP EXLCG 

61 0 55 CAPITAL GAIN3 OR LOS3�3 IN AGI COMP CGhGIX 

AFTER LIMITATION 

bz o 56 TAX aAv1ma DUE TO ALTERNATIVE TAX COMP ALTTAX 

e3 0 57 LONG-TERM GAINS FROM INSTALLMENT 127 LTGIQ 

SALE3 

64 o 58 LONG-TERM CAPITAL GAINS SHELTERED caw CGYAX 

UNOER THE ALTERNATIVE TREATMENT 

QS C 59 COMPUTATION OF MI" TAX, PREFERENCE COMP PREFI 

INCOME NET Of CAPITAL GAIN8 

66 0 60 COMPUTATION OF WIN, TAX, TOTAL ITEM 152 PREFX 

S OF TAX PREFERENCE3 

67 0 bl .COMPUTATION OF MIN, TAX0 OTHER COMP 4OTRP 

TAXES REDUCTING PREFERENCE INCOME 

68 0 62 CoMPUTATIoN OF HIN. TAX, 1975 NET 1Sf "5 

OPERATING LO39 CARRYOVER 

69 0 65 COMPUTATION CF MIN, TAXI MINIMUM 156 MTDPY 

TAX OEFERREO FROM PRLCR YEARC31 

70 0 6U COPPUTATION QF MlN, TAX, UNUSED 157 UNCR3 

CREDITS 

71 0 65 HAX TAX ON EARNED INCOME, TAX COWP PAXTAX 

SAVING3 FROM MAXIMUM TAX 

72 D 66 MAX. TAX ON EARNED INGOME, EARNED 159 EARN 

INCCME 

73 0 67 MAX. TAX ON EARNED INCCME, 160 ACJEI 

OE OUC T IiCNQ 

74 0 68 HEIGHT 28 kT 

75 C b9 TOTAL EXEMPTIONS 135 

76 0 70 INTEREST INCOME 42 

NOTES: COMP :COMPUTED 

RESV z RESERVED FOR FUTURE hODITIClN3 

IHPT = IMPUTED ITEM 
TREASURY PEHSONAL 1NOIVIDUAL.INCOME TAX MGCEL. 27 JUN 78 206Q 

TABLE Zebalt DATA RECORD SPECIFICATICh FOR THE 1978 

MERGE0 INOIVIDUAL INCOME TAX FiETllRN 

FULL-SAMPLE; MAPP�O AND PACKEO 

FIELC ARRAY ---REFEREhCE---

StQ NAME DATA ITEM DESCRIPTIUN (;kMAPPEO EQUIVNOS & NO acuRcE ALM 

77 0 71 INCCME TAX kITHHELD 49 

78 0 72 197s ESTIMATED TAX PAYMENTS 50 

79 0 73 AMOUNT PA10 kITH FORM 4868 52 

80 0 74 TAX DUE AT TIME Of FILING 53 

61 D 75 OVERPAYMEkT, REFUND 54 

82 0 76 OVERPAYMENT, CREDIT TO 1976 55 

ESTIMATED TAX 

83 0 77 TAX PA10 WITH RETURN 56 

84 c 7e to BUSINESS INCOME OR LOS~ 57 

MS 0 79 SUPPLEMENTAL SCHEOULE, NET GAIN'GFi S9 

NET LOSS 

86 0 80 PENSIONS, RENTS, ETC., INCOME Off . 60 

LOSS 

d7 0 81 t- FARM INCEME OR LOSS 62 

60 0 82 STATE INCOME TAX REFUNDS 63 

89 C 83 ALIMONY INCOME 64 

90 0 8U +- OTHER INCEME OR LOSS 6S 

91 0 85 ADJUSTMENTS TO INCOME, MOVIhC 67 

EXPENSES 

92 C 86 ADJUSTMENTS TO INCOME, EMPLGYEE 68 

BUSINESS EXPENSES 

93 0 87 ADJUSTMENTS TO INCOME, PAYMENTS TIC 69 

A KEOGH RETIREMENT PLAN 

94 0 88 ADJUSTMENTS TO INCOM�, PAYMENTS TSC 79 

INDIVIDUAL RETIREMENT ACCOUNT 

95 0 69 ADJUSTMENTS TO INCOME, FORFEITED 71 

INTERUT PENALTY 

96 D 90 CREOITS, RETIREMENT INCOME 75 

97 0 91 CREDITS, INVESTMENT 76 

98 c 92 cmms, FOREIGN TAX 77 

99 0 93 CREDITS, COhTRIBUTIOkS TO CANOIOATE 78 

100 D 94 CREOITS~ WORK INCENTIVE 79 

101 0 95 CREOITS, PURCHASE OF NEW RESIDEhCE 80 

102 0 96 CREDITS, OTHER TAX CREDITS e1 

143 0 97 OTH�R TAXES, HECOMPIITED PROGR YEAR 82 

NOTES: COMP = COMPUTED 

RESV :RESERVED FOR FUTURE AODITIONS 

IMP1 t IMPUTED ITEM 
, 

TREASURY PERSQkAL INOIVIDUAL INCOME TAX MOOEL. 27 JUN 78 2-6 1 

TABLE 2.6.1t DATA RECORO SPEClFICATDCk FOR THE 1978 

MERGED INDIVIDUAL INCOME TAX RETURN 

FULL-SAMPLE; MAPPEO AN0 PACKED 

FIELO ARRAY ---REFEREhCE---

S5Q NAPE DATA XTEM DESCRIPTION I,hMAPPEO EOUIVNUS 8 h0 SOURCE ALENT 

INVESTMENT TAX CREDLT 

104 0 98 OTHER TAXES, RECOMPUTED PRIOR YEAR 83 

WIN CREOIT

10s o 99 OTHER TAXES, TAX ciN PREFATURE 85 

OISTRIBbTIOkS (FOAM 5329)

106 0 100 OTHER TAX�S, SELF-EMPLOYMENT TAX 06 

107 G 101 OThkR TAXES, SOCIAL SECURITY TAX *Ck 07 

TIPS, UNCOLLECTED TAX 

100 0 102 OTHER TAXES, EXCESS CGNTRIBUTIOhS 

TO AN IhOIVIOUAL RETIREMENT ACCDUNT 

109 0 103 OThER TAXES, ALL OTHER TAXES 

110 0 104 OTHER TAX PAYMENTS, EXCESS FICAIRRT 

A TAX WITHHELD 

111 0 105 OTHER TAX PAYMENTSI CREDIT FOR 

FEO�RAL TAX ON GASOLfNE 

112 0 106 OTH�R TAX PAYMENTS, TOTAL OTHER 

PAYMENTS 

lt3 0 107 MEDICAL Ah0 DENTAL EXPENSESr 112 

INSURANCE PREMIUMS 

114 o 108 MEDICAL ANO OENTAL wxma, 

MEDICINE AN0 DRUGS IN EXCES3 OF 1% 

115 b 109 MEDICAL AN0 O�NTAL EXPEkSESr 

88 

89 

90 

91 

92 

93 

95 

98 

MEOICAL Ah0 O�NTAL IN EXCESS OF ~3% 

116 0 110 MEOICAL AND O�NTAL EXPENSES, TOTAL 

(AFTER

117 0 111 TAXES, 

118 0 112 TAXES, 

119 0 113 TAXES, 

120 0 114 TAXES, 

121 0 115 TAXESt 

122 0 116 TAXES, 

INCOME LIMIT) 

STATE AND LOCAL INCOME TAX 

HEAL ESTATE 

STATE AN0 LOCAL GASOLINE 

99 

100 

101 

102 

103 

104 

COMP 

108 

109 

110 

GENERAL 

PERSCNAL 

OTBER 

SALES 

PROPERTY 

CASH 

OTHER THAN CASH 

CARRYOV�R FROM PRBCR 

123 0 117 CONTRIBUTIONS, 

124 o 110 CONTRI~UTIO~ 

125 0 119 CONTRI8UTIOhS, 

YEAR 

NOTES: COMP = COMPUTED 

RESV 0 RESERVED FOR FUTURE ADDITIONS 

IHPT f IMPUTED IlEM 
I t 

TREASlJFiY PERSONAL IhDIVIDUAL INCOME TAX HOBEL, 27 JUN 78 2-62 

TABLE 2,b.I: OATA FiECORO SPECIFICATLCN FOR TbE 1978 

MERGEO INOIVIOUAL INCOME 

FULL=SAMPLE; MAPPED AN0 

FIELD ARRAY 

3EQ NAME OATA ITEM DESCRIPTION 

NdS 8 NO 

126 0 120 CONTRIBUtlCNS, OTHER 

TAX RETURN 

PACKEQ 

---REFEREbCE---

CkMAPPEO EQUfV= 

SGURCE ALENT 

CUMP 

114 

116 

caw 

127 0 121 MfSC, OfDUCTLONSi 

128 0 122 MISC. QEDUCTIONS, 

CONTRI8UTIONS 

129 0 123 MISCo DEDUCTIONS, 

130 0 124 SHOR.T-TERM CAPITAL 

PRE-1970+PCST-1969 

UNLQN OUES 

POLITICAL 

OTHER 

GAINS OR LOS~ESP118 

ST CAPITAL L'GSS 

131 0 125 NET LOSS BEFORE LIMITATlCN 

132 0 126 ALTERNATIVE TAX 

133 0 127 PENSIQNS AND ANNUITIES, INQaME THIS 

YEAR 

134 D 128 +- RENTS, NET INCOME OR NET LO93 

135 0 129 +* ROYALTIESr NET INCOME OR NET 

LOSS 

136 0 L30 PARTN�RSHIPS, TOTAL LNCOME 

137 0 131 PARTNERSHIPS, TOTAL LOSS 

138 0 132 +- PARTkERSHIPS, NET INCOME: OR NET 

LO33 

139 0 131 ESTATE OR TRUST, TOTAL INCOME 

140 0 134 ESTATE OR TRUST, TOTAL LO93 

141 0 L35 +- ESTATE OR TRUST NET INCOME CR 

N�T LOS8 

142 0 136 SMALL BUSINESS CORP., TOTAL INOCME 

143 0 137 SMALL BUSINESS CORPI, TOTAL LOSS 

144 0 138 +- 3MALL BUSINESS CORPQRATGON NET 

INCOME OR hET LO58 

145 0 139 SCHEDULE $E NET EARNIhGS FROM SELFEMPLOYMENT 

146 0 140 COPPUTATION OF MINI TAX, ACCEL,

OEPR, ON LOk-INCOME RENTAL HOUSING 

147 0 141 COMPUTATION OF MIN, TAX, ACCELI 

OEPR. ON OTHER REAL PRCPERTY 

148 0 142 COMPUTATION OF MINI TAX, ACCEL, 

OEPR. ON PERSONAL PROPERTY 

149 0 143 COVPUTATIQN OF MIN, TAX, TOTAL 

NOTES: COMP = COMPUTED 

RESV t R�SERvED FOR FUTURE ADOITIOhS 

IMPT :: IMPUTED ITEM 

CDMP 

CQM? 

129 

1.31 

t32 

L33 

1134 

t35 

136 

L37 

1+38 

1.39 

140 

141 

142 SEEARN 

143 

144 

145 

146 

~ o ~ o o ~ o ~ o w o o ~ ~ ~ ~ ~ o ~ ~ o m o o w ~ ~ ~ o o ~ o o 
TREASURY PERSONAL INDIVIDUAL INCOME TAX MUDEL. 27 JUN 78 2-43 

TAULE 2.6.1: DATA RECORD SPECIFICATIOh FOR THE 1978 

VERGED INOIVIQUAL INCOME TAX RETURN 

FULL-SAMPLE; MAPPED AN0 PACKED 

AMOATIZAtlGN 

150 0 144 COVPUTATICN OF MINI TAX, STOCK 147 

OPTIONS 

1st C 145 COMPUTATION 0 MINI TAX, RESERV�S 148 

FUR BAD DEBTS 

1S2 0 146 COMPUTATION OF MIN. TAX, OEPLETIGh 149 

153 C 147 COMPUTATIQk OF MINI TAX, CbPITAL 150 

GAIlvS 

154 0 148 COMPUTATICN OF MINI TAX, tXCLUSrOh 152 

155 0 149 CCMPUTATION CF MIN. TAXI TAX FRGH 153 

PREMATURE DISTRIBUTIONSCSE RETIREPENT) 

156 0 150 COMPUTATIGN OF MIN, TAX, TAX CARRYOVER FRCM PRIOR YEARCSI 

157 0 151 MAX. TAX ON EARNED INCOME, E4RNED 

NET INCOME 

158 0 152 MAX. TAX ON EARNED INCCME, TAX 

PREFEREhCES IN EXCESS OF 53Or000 

159 0 153 MAX, TAX ON EARNED INCOME, ADJUSTED 

EOHNED TAXASLE INCOME 

160 0 154 MAX. TAX ON EARNEO INCOME, MAXIMIJF 

TAX 

101 0 155 FORM 4952, IN’VESTMENT INTEREST, 

, TOTAL 

162 0 156 FORM 4952, INVESTMENT INTER�ST, 

TOTAL NON-BUSINESS 

163 D 157 FORH 4952, IhVESTMENT INTEREST, 

INTEREST DEDUCTION OISALLOkED 

144 0 158 FORM 4972, SP�CIAL LUMP-SUM IhOOHE 

AVERAGING, ORDINARY INCOME PORTLGk 

145 0 159 FORM Y972, SPECIAL LUVP-SUM INOCPE 

AVERAGING, 10mYEAR TOTAL 

166 o 160 FORM 4972, SPECIAL Lucp-auH INCCM 

AVERAGING, TOTAL TAXABLE AMOUNT 

167 o 161 FORM 4972, SPECIAL Luw-auM INCOME 

154 

COMP 

COMP 

COHP 

COMP 

165 INVIT 

166 

167 

168 

169 

170 

171 

AVEAAGfhG, ADJUSTED TiOTAI. TAXABLE AMOUNT 

NOTES: COMP 0 COMPUTED 

RESV = RESERVED FOR FUTURE AOOITIONS 

IMP1 0 IMPUTED ITEM 
TREASURY PERSONAL INDIVIDUAL INCOME TAX WPEL, 27 JUN 78 2-64 

TAeLE Z.6al8 DATA RECORO SPECXFICATLON FOR THE 1978 

MERGED INOIVIOUAL INCOME TAX RETURN 

FULL-SAMPLE; M4PPED AND PACKED 

- ~ . ~ a o ~ ~ o ~ o ~ o o - ~ . - m ~ o ~ o ~ o ~ ~ = o ~ o ~ 

FIELD ARRAY .o--REFERENCE--= 

SkQ NAME DATA ITEM DESCRIPTION IjhMAPPEO EQUIVNO3 & ha SOURCE ALENT o~~o~o~~oooo~o--*=ooo~o~~ooo~~~~o~~

ma D 162 FORM 4972, SPECIAL LUMPWH INCGPE 172 

AVERAGING, TAX ON ORDINARY INCOME 

149 D 163 FORM 4972, SPECIAL LUMP-SUM INCCME 173 TSLSIA 

AVERAGING, TAX FROM SPECIAL INGCME 

170 D 164 FORH 4972, 1974 INVESTMENT INTEREST 176 

I ORDINARY 1NCOME.PORfION 

171 0 165 FORM 4972, 1974 INVESTPENT INTERE3T 177 I TUTAL BEFCRE EXCLUSLCN 

172 0 166 FORM 4972, 1974 INVESTMENT INTEREST 178 

I TOTAL TAXABLE AM0UhT 

173 0 167 FORM 5405, C08T Of RESIDENCE 174 

174 0 168 FORM 5405, ADJUSTED BA313 175 

175 D 169 INVESTMeNT INTEREST, INTEREST 

EXPENSE ALLCHEOr NON~8USINES3 

COMP INVIA 

176 0 170 IMPUTATION, STATE 8 LOCAL 8GNO IMP1 

I~TEREST 

177 0 171 IMPUTATION, Sh4RE OF HAG� INCOME 

ATTHIWTABLE TO SPOUSE 

IMP1 

178 0 172 IMPUTATION8 ShARE OF HAG� INCOME N.A, NOT ATTRI6UTABLE TO HUS8AN0'3 131 JOB 

179 0 173 IMPUTATION, FLAG FOR COhVER8ION IMP1 

OF CAPITAL GAINS 

160 0 lj4 COMPUTATION MIN, TAX, 115 PREF- CCMP FIFTH 

ERENCES FROM PREVIOUS 5 YEARS 

181 C 175 IMPUTATION, 1978 SOCIAL SECURITY IMPT 

PAYROLL TAX, TAXPAYER 

182 C 176 IMPUTATION, 1978 SOCIAL SECURITY IMPT 

PAYffOLL TAX, SPOUSE 

le3 o 177 IMPUTATION, UNEMPLOYMENT catwt+ IMP1 

SATION 

184 0 178 IMPUTATION, SOCIAL SECURITY 8 IMP1 

RR.AETIR,BEhEFIfS 

105 0 179 IMPUTATION, EXTRA EXEMPTIONS IMP1 

FOR WJTHHCLOIhG ESTIMATIOh 

186 0 180 IMPUTATION, RESERVED FOR FUTURE IMP1 

NOTES8 COMP = COMPUTED 

RESV 0 RESERVED FOR FUTURE 400ITIONS . IMP1 S IMPUTED ITEM - - o ~ o ~ ~ m ~ o ~ ~ ~ o o = o - o o ~ o o o ~ o ~ - ~ ~ 
I I 

TREASURY PERSONAL INDIVIDUAL INCCME TAX PODEL. 27 JUN 78 2-65 

TA8LE 2.6.11 DATA RECORD SPECIFICATLOh FOR THE 1978 

MERGED lNOIVIQUAL INCGME TAX RETURN 

FULL-SAMPLE: MAPPED AND PACKED 

AODiTIOhS 

167 0 181 IPPUTATION, RESERVED FCR FUTURE 

AOC IT IONS 

188 PM 1 BFI BUSINESS OR FARM INOICAVCR 

189 MM 2 BUSIND 8USIhESS INOICATQR 

190 MM 3 CSELI CORRECTED SELECTION ITEM 

CGO� 

191 PM 4 DCIhD DISTRICT OF COLUMBIA 

IlvOICATUR 

192 IJM 5 DEPINC OEPEhOENT HITH UN�CLRKED 

INCOME CODE 

193 PM 6 OGRQUP 

194 MM 7 DIST 

195 WM 6 ELECT 

CODE 

196 MM 9 FLPD 

197 MM 10 FORM 

198 HM 11 HINTX 

RETUHN 

199 MM 12 PSAMP 

200 MM 13 RESAOJ 

cone 

201 MM 14 RECHEV 

zoz MM is RSHAR� 

203 CM 16 SCHCF 

204 MH 17 SELI 

205 MM 18 STATE 

206 MM 19 TAXMOO 

ZU7 MM 20 TNOCF 

GROUP COO� 

DISTRICT CODE 

PRESIO�NTIAL ELECTION FUND 

FILIhG PERIOD CODE 

FORM OF RETURN CODE 

HIGH INC9HE NON-TAXABLE 

COO� 

PUNCHEO SAMPLE COOE 

RESIOENCE CREOIT ADJUSTMEht 

REVENUE SHARING RE-CODE 

REVENUE SHARING COOE 

SCHEDULE C OR F INDICATOR 

SELECTION ItEM COO� 

STATE CODE 

TAX MODEL CODE 

TOTAL NUPIHER OF PROPRIEtORShIP SCHEDULES 

208 MM 21 TYAMP TAX PtOOEL SAMPLE CODE 

209 MM 22 TXBAL TAX BALANCE CODE 

210 PM 23 TXST TAX STATUS COD� 

211 MM 24 PUhCI.rED SELECTION AMOUNT 

212 MM 25 r********COhFIO�NTIA.L**~***** 

NOTES: COMP f CWPUTED 

IMP1 

1 

z 

4 

5 

6 

7 

0 

9 

11 

12 

14 

16 

17 

18 

19 

20 

21 

22 

a3 

24 

25 

26 

27 

*Zb 

137 

RESV s RESERVED FOR FUTURE AOOIfIQkS 

IMPT = IMPUTED ITEM ~ m ~ ~ m m ~ ~ m m ~ w ~ m - ~ ~ ~ ~ ~ m m m ~ m ~ m ~ ~ ~ ~ ~ 
TREASURY PERSONAL INOIVIDUAL INCOME TAX MODEL. 27 JUN 78 2-66 . 

TABLE 2,801: DATA RECORD SPECIFICATICIV FOR THE 1978 

MERGED INoIVIOUAL INCGME TAX HETURh 

FULL-SIMPLEI MAPPED ANG PmEo 

****3IE EXTRACT**** 

235 MM 48 TRIM RECORD SEQUENCE NUMBER KPSEQ 

236 MM, 49 MATCHED TAX RECORD IO PTRID 

237 MM 50 MERGE hEIGHTr INTtGER PkT 

NOTES: COFIP = COMPUTED 

RESV :: RESERVED FOR FUTURE AOOIfIOhS 

IMPT f IMPUTED ITEM ~w~m~~~~~~~~~wwwwow~w~~wmww~om~oaw~~mwww~~~w
TREASURY PERSONAL INDIVIDUAL INCOME TAX PODEL, 27 JUN 78 2-42 7 

TABLE 2.6.11 DATA RECORD SPECIFXCATLCN FOR THE 1976 

MERGED INDIVIDUAL xt.tcaw TAX RETURN 

FULL-SAMPLE; MAPPED AN0 PACKEO 

238 MM 51 SIZE QF FAMILY TO WHICH TAX UNIT FMSIZE 

BELONGS 

239 HM 52 31E STATE CODE 

240 MM 53 TENURE 

241 MM 54 FILING UNIT SIZE 

242 MM Sf TRIM SCHEDULE CODE 

243 IrM 56 OEPENOENT STATUS CODE 

244 FM 57 FILER/NCIN-FXLER COO� 

245 DO 1 MERGE HEIGHT FLOATING POINT 

246 00 2 AOJUSTEO FAMILY TOTAL INCOME 

3TATE 

HM8fAT 

FLGSZ 

JSCHED 

OPNTST 

FILCOO 

kTMERG 

CFTINC 

247 OD 3 AOJUSTEO HOUSEHOLO TOTAL INCOME CHTIhC 

249 OD 4 YEARLY FOOD STAMP BONUS VALUE FSYEAR 

(FOR UNIT hITH HEAD OF nOUSEHClLD1 

249 OD 5 VETERANS BENEFITS - VEfB 

250 OD 6 ADJCISTED GOVERNMENT PENSIONS (3CPMEO GPNS2 

OVER TAX UNIT) 

251 00 7 AOJUSTEO PRJVATE PENSl'CN3 PPNS2 

(SUMMED OVER TAX UNIT) 

2% 00 8 ADJClSTEO vrOHKMEN8 COMPENSATION kRKC2 

(SUMMED OVER TAX UNIT) 

253 DO 9 ADJUSTED UNEMPLOYMENT CQMPEhSATX'GK UNHCZ 

(SUMMED OVER TAX UNIT)

254 OD 10 AOJUSTED SCIAL SECURITY AN0 RAIL- 3SEC2 

ROAO RETIREMENT INCOME 

ZSf 00 11 SIMULATED PbBLIC ASSISTANCE &ELF2 

(SUMMED OVER TAX UNIT FOR PA PARTICIPANTS)

256 00 12 FILING UNIT WAGE8 kAGES 

257 DO 13 HEAD'S HAARE OF WAGE8 AGES 

ZSB DO 14 FILIhG UNIT SELF-�MPLGVED NGN-FARP SENF 

259 00 15 HEADS SHARE OF 3ENF H8ENF 

260 OD 16 FILIN UNIT SELF-EMPLOYEO FARM ItuCCH SEF 

Zbl OD 17 HEAO HAARE OF S�F HSEF 

NUTES: COMP = COMPUTED 

RESV = RES�RvEO FOR FUTURE AOOITIOtuS 

IMP1 = IMPUTED ITEM ~~mm~~~m~~m~m~m~~mmmm~~mmmmwmm-mmm~mommm~w~~m~momm
I I 

I 

TAELE 2.6.1: DATA RECORD SPECIFICATIGN FOR THE 1978 

MERGE0 INOIVIDUAL LNCQffE TAX RETURN 

FULL-SAflPLE; MAPPED AN0 PPCKEO 

FIELD ARRAY -m-REFEREhCE---

SEQ NAME OATA ITEM DESCRIPTION L;NMAPP�O EQUlVNos & NO SOURCE ALENT w ~ m m I ~ ~ w w o m ~ ~ ~ l ~ w m ~ ~ ~ ~ w ~ w w w w ~ ~ w ~ m ~ ~ m w ~ m w 

Zbt 00 18 SOCIAL SECURITY AN0 RR RETIREMENT HOSDTX 

OISAeIbITY AND SURVIVOR EWPLOYEE TAX 

263 00 19 OSOTX+RRlX FOR HIFE ONLY NQSDTX 

264 00 20 SOCIAL SECURITY 8 RR RETIREMENT HS9HTX 

HEALTH IhSURAhCE EMPLOYEE TAX RCR 

MEA0 ONLY 

256 DD 21 SSHTX+ARHTX, FOR NIFE ONLY kSSHTX 
TREASURY. PERSQNAL INOILIDUAL INCOME TAX MODEL, 27 JON 78 2-69 

APPENOIX A 

A, SUMVARY OF THE SAMPLING METHUDOLOGYo 

STEP I: UhSTRATIFYIkG THE REGIONAL GROUPS, 

THE STATISTICS Of INCOME (SUI1 SAMPLE WAS STRATIFIED BY HAPPING 

EACH STATE INTO ONE OF FIVE REGI’OIUAL GROUPS Ch THE BASIS OF STATE 

SIZE AkD ASSIGNNING DIFFERRENT SAMPLING RATES TU EACH REGIONAL 

GROUP, THE TAX MOREL, AS EMPLOYE0 BY THE OfFICE OF TAX ANALYSIS 

(UTA), 13 ALWAYS USED FGR NATIONAL ESTIMATES Ah0 NEVER STATE UR 

REGlOFtAL ESTIMATESo THEREFORE, A SAMPLE IS hEEDEO kW�RE ThE 

PHOBABILITY THAT A RETURN IS INCLUDED IN ThE SAMPLE IS INDEPEhDEhT 

OF ITS GEOGRAPHICAL LOCATIOIU. THIS NQULO REQtjlRE A CONSTANT 

SAMPLING RATE ACROSS THE REGIONAL GROUPS, 

THE GWRAL MEtw”ow FOR UNSTRATIFYI~G THE REGIONAL GRCUPS IS 

AS FOLLOWS: 

SAMPI.� ACCUROING TO TABLE.2.A.l. THE kEIGm OF THE 

OR�TAINED RETURN3 ARE MULTIPLIED BY THE SAMPLING 

RATE OF TH�IR CELLS. 

THE FINAL RESULT OF UNSTRATIFYLNG THE REGIOhAL GROUPS HAS TQ 

REDUCE THE $01 8AMPLE FROM 206,463 RETURNS TO A SAMPLE GF 154,*351 

RETURNS, 
TABLE 2eA.l$ SAMPLING RATTCS BY REGIONAL 

GROUP AN0 SAMPL� CLASS 

26 

11 7632 3.73 1.46 1 e21 

12 8.14 3.79 1e55 1.00 

1f3 7.44 3.85 1 .94 1.09 

14 9,30 4.89 2-17 1.78 

15 loIOU 4.00 2.00 1.60 

16 7.00 83.50 1.75 1.00 

17 

18 

j,OO

1.00 

3,QO

1,oo 

13.00 

1.00 

1.67 

1.00 

19 1.00 1.00 1.00 1.00 

21 

22 

7.14 

6.90 

l1,ll

9.00 

1 .as 

le16 

1,oo 

1.00 

a3 S .zo 1-65 le24 1.04 

24 5.72 7,90 1.31 1.14 

a5 5.50 5,so 1.10 1.10 

6.25 7.14 le25 1.00 

27 10.00 5.00 1e67 1.00 

2% 4,OO 4,OO 2.00 1,00 

29 l,OO 1,oo 1.00 1,oo 

30 1,OO 1,oo 1.00 i eo9 

STEP XI: RESTRATIFYING THE RETURNS, 

1.06 

1 vu2 

1.00 

.1e00 

1.00 

1.00 

1.00 

1,00 

1 eo0 

2,19 

1.16 

1.00 

1,00 

1.00 

1.1~ 

1.00 

1 eo0 

1.00 

1.00 

THIS STEP CONSISTS OF CCRRECTING FOR AN OVER-SAMPLING OF FARW 

RETURN3 AN0 BUSINESS RETURN3 FROM OTA'9 PQ1rjT'~f VIEW, THE 

STATISTICS OXVISION OF 1RS IN THEIR SAMPLING STRATIFICATION 

EMPLOYS NGT ahLY AGI AND LARGEST SINGLE INCOME ITEM (LSEI) BUT 

ALSU GROSS RECIEPTS. NHEN THESE GROSS RECIEPTS ARE DERIVE0 FROM 

FARM ACTIVITY, THE RETURN IS CLASSIFIED -- IN 1975 Ih SAMPLE 

CODES 11 THROUGH 19, THE SO CALLEO WN-BUSINESS CODES, khILE THE 

RETURh IS PLACE0 IN SAMPLE CODES 21 THRCUGH 130 IF THE AECIEPTS ARE 

FeUM A BUSINESSe OTA, HOWEVER, DOES MT CARE ABOUT STRATIFYIhG Gh 

THE 8AS13 OF GRCSS RECIEPTS BECAUSE 'THIS USUALLY LEA03 TC AN 

OVERSAPPLING OF RETURNS, I.�. GROSS BUSINESS H�CIEPTS CLASSIFI�S A 

R�TURtv IN A SAMPLE CLASS hITH A HIGHER SAMPLIkG RATE THAN rVOUL0 

HAVE BEEN THE CASE USING OTHER IhFGRMATION THAT APPEARS CN THE TAX 

RETURN. 
1 t 

IN 1975, IRS FOR THE FIRST TIME (AND AT OTA'S REQUEST) PROVIDED 

FOR A SEPERATE STRATIFICATION IGNORING GROSS FARP 8 BUSIM~S 

RECIEPTS, THESE SAMPLE CATEGORIES hERE LABELLED ITSAMP' TC 

OiSTIhQUlSH THEM FRffM THE 'CSAMP' CODES USEO IN THE SOI, hE HADE 

U3E OF THESE TO RtDUCE TWE SQI'S CVkRSAMPLIhG @Y USING TPeLE 2mA,2 

kIT# THt AfTACHkO INSTRlJCTIOhSe 

AS A RESULT OF RESTRATIFYING THE RETURNS# A80LT 5 PERCEhT OR $OM� 

8iOOO RETURNS kERE ELIVINATED, LEAVING A SAMPLE OF 1468749 

RETURIUS, ThE SAMPLING RATES ANO RECIPRCCALS co haf WORK OUT 

PHECISELY: THE GRIGINAL SAMPLE REPRESEhTEO 82,230,256 RETURNS 

whILE ThE NkW SAMPLE REPRESENTS 82,2268223 RETURNS, THIS I3 AN 

ERROR IC? 0,005 PERCENT. 
TREASURY PERSONAL INOIVIOUAL INCOME TAX MCO�L. 27 JUN t8 9-72 

I 

TA6l.E 2.A.2: SAMPLE HATES FtFi 

REALLOCATEQ RETLRNS 

12 1.78 lrOO 

13 3.00 1eb7 1.90 

14 3,10 lo71 1.00 1,oo 

15 50.34 27-65 16,SO 1.5.60 1.00 

16 281.44 155.70 92.21 87,1'7 SOSO 1.00 

17 667.25 1369,12 218.64 2ObQ6S t3,00 2,,35 1,OO 

19 2OJS.11 1114m7S 660.29 624,ll 139*22 7.10 lf.00 1.00 

A) FOR CSIMP CODES 11, 18, 2lr g 29 KEEP ALL, 

8) FOR THE REST, SAMPLE ACCORDING PO YAaLE 2.A.lr 

REW�IGHTING EACH SELECTEO RETURN BY THE INV�RSE 

OF IYS SAMPLING RATE, 

E,G, THERE ARE 174 RETURNS hITH CSAMP a5 AND 

YSAMP 0 21, SAMPLE FROM THESE AT A RATE fJF 1 

IN 13,670 EITHER 47 OR 40 RETURNS WILL BE SELECTED 

ANQ ?HE INEIGHT OF EACH GNE SkCULO BE MULTIPLIED 

8Y i3,67, -
TREASURY PEHSUML INDIVIDUAL INCOME TAX MODEL. 27 JUN 78 2-x:! 

STEP 111: SELECTIhG A SUBSAHPLE. 

A TAX MODEL SAMPLE OF EkEh 147,000 RETURNS IS STILL FAR TOO LARGE 

FOR PRACTICAL PURPCSES kITHIN OTA, OTA MAKES GVER 1,200 TAX MOOEL 

RUNS PER YEAR ALO A SAMPLL UF 14fr000 RETURIUS I(rUULD ALFCST TRIPLE 

THE CCMPUTER TINE N�EDED FOR EACH RUN, A8 A FGACTICAL FtEcEsSiTy, 

A SMALLER SAMPLE IS REQUIRED. PAST EXPERIENCL WITHIN CTA HAS 

INDICATED THAT A SAMPLE SIZE Of APPROXIMATELY 50100I) (5OK) RETUHhS 

IS SUFFICIENT FOR WST TAX MODEL SIMULATIONS, 

GlVtN ThE 21 STRATA INTO ~HICH*~;H~;SO1 SAMPLE IS DIIJIDEC, khAT 

TECHNIQUE WILL PRODUCE A SOK SUBSAWPLE THAT IS WPTIMALw? IN 

OrHtR kCjRD3, HOW 8WGtJLD RETURNS FRCM EACH OF THE 21 STRATA IFC TH� 

FULL SCI BE CHOSEN TO PRODUCE A SOK SUBSAMPLE kHERE THE ESTIWATE 

OF THCL MEAN hILL HAVE ThE SMALLEST POSSIBLE STANOARO ERRCk? THIS 

CAN BE ACCOMPLISHED BY REQUIRING TPAT THE SAMFLING RATE FGR EACH 

STHATUP 8k PROPORTIONAL TO THE STAkDARD DEVIATIOk OF THE \iAGIA6LE 

IN THAT STRATUMo ThIS IS INTUITIVELY APPEALfkG: If ChE GRGUP HAS 

ThICE A3 MUCH VARIABLITY AS ANOTHER, IT SHCULC BE SAMPLED ThICE AS 

HEAVILY, hOWEV�R, WHAT IS AN "OPTIMAL" STRATIFICATICN FCR GNE 

VARIAi3l.E MAY BE QUITE DIFFERENT FROM hkAT IS CPTIMAL FOR AbOTHER 

VARIABLE. 

TABLE 2,A,3 PRESEIvTS EIGHT VARIABLES ThAT &�RE CCNSIDERED AS 

STRATIFYING-VARIABLES BY THE OFFICE OF TAX AEtALYSIS, THE LAST 

COLUMlv SHOW3 THE STANDARD ERRORS OF THE SOH TAX MODEL SIJBSAMPLE 

HHICH kAS OERIVED BY ~PTIMIZLNGON TAXES PAID, AS CAN BE SEENi 

ThE STAEtDARO ERRORS IN THE NEh TAX MODEL ARE LESS FOR EVERY 

VARIABLE EXCEPT PREFERENCE INCOME THAN IF GfP bAO FOLLOkrEO ITS' 

PAST PRACTICE OF NAIVELY SUBSAMPLIkG THE SOX SAMFLE, 
TREASURY PERSONAL INDIVIDUAL INCOME TAX MGDEL, 27 JUN 78 2-74 

I 

TABLE 2oAeg3: STANDARO ERRORS OF ESTIPATE IN OCLLARQ 

FGR EIGHT VARIABLES CGhSIDERED AS 

STRATIFYING VARIABLE3 FCR CPTIWfZATICN 

OF THE TAX MOEL SUBSAW(PL&, 

SAMPLE SIZEt ' 147K 147K 50K SOK 

&AGES & SALARIES 9,603 Zi',? 15.7 26.0 22.3 

OIVIDENDS 28 1 19,1 '385 6.0 5.0 

INTEREST 520 7 el3 5.0 8.6 7.1 

AGI 11,526 60.0 12.9 22: .z 18e3 

TAXAULE INCOME 7,242 35.7 10.6 10.1 14.5 

CAPITAL GAIN3 169 21.7 2,9 4e9 4e4 

PREFERENCE IhCOM� 64 21.6 1.0 le7 2e1 

TAX (AFTER CREDITS) lq5L3 18.5 2 86 4e7 3.7 

c .F 

AS TABLE Z.A.4 SHOWS, THE FINAL SAMPLE SELkCTION INCLUDED ALL OF 

ThE 252 RETURNS WITk THE CSAMP C00E8 16 & 29, TkESE RETURNS ALL 

HA0 AGI'S OF OVER S~OOtOOOAND PA10 ZERCI TAX, hHILE ThE 3TANOARO 

OEVIATION AN0 TME POPULATION NUMBERS INVOLVED "ERE 30 SNALL THAT 

NONE CF THE OPTIMIZING LARIABLES CALLED FOR IhCLLlSIQN tGF THESE 

RETURNS IF( Thk FIhAL SAMPLE, IT SEEMED A hASTE TO THROW THEM 0U.T 

AFTER IRS HAD SeLECTED THEM. 

IN ALL CASES, THE ORXGIFtAL hEIGHT CF THE RETURN WAS MULTIPLIED 

Th� SAMPLLNG HATE, THE AVERAGE hEIGhT IN Ti-� GRIGINAL 200,000 SO1 

SAMPLE WAS 399, IN THE FINAL SOK SUBSAMPLE, THE AVERAGE hEIGHT 13 

AC30Uf 1,645 AN0 ThE MAXIMUM WEIGHT 13 51140, 

c 
JREASURY PERSONAL IhOIVIOUAL INCOME TAX MCDEL, 27 JUN 78 2-75 

f4BLE 2aAa4: SAMPLING RATES FOR TI’� 50K SUtlSPMPLE 

OPTIMIZED CN TAXES PAlO 

11 1.8680 101698 

12 2,3000 St 197 

11 3 3,1050 4r539 

14 

15 

1,09ao

u,saio 1~3r951 

3m311 

lo 

17 

9,9800 

7.8160 

1,790 

1 I 082 

18 1,0000 149 

19 2,4530 1 r.644 

31 1’0.2960 639 

22 7.0800 585 

a3 7 19350 614 

24 4,9350 957 

as 4,7170 1r105 

26 

27 

3,6050 

6,6690 

1 P33C 

7 14 

28 . Sa6OSO 468 

29 1,0000 lQ? 

*30 2,1410 18115 

TOTAL 2,935 5OtOOO 
TREASURY PERSONAL INDIVIDUAL INCOME TAX MODEL. 27 JUN 78 2-76 

! 

APPENDIX B 

8, ANCMALIES IN THE 1975 OATA BASE, 

THIS SECTION LISTS THE MAJOR ANOFIALIEQ THAT hERE ENCOUNTEREO ON 

THE 1975 TAX MOOEL SAMPLE AND HOW THESE ANCMALIES hER� EDITED IN 

ORDkR TO PRODUCk A 'CLEAN' SAMPLE, THE TREATVENT OF �ACH ANOMALY 

WA3 OETERMINEO t3Y AElSwERIIVG THE FULLOHI~UUGSERIES OF rJuESTrON3: 

(A) I3 THE ANOMALY THE RESULT OF AN ERROR IN THE COClhC 

OF TPE HODEL'S TAX CALCULATOR? IF 30r THE &DEL NAS 

CORRECTED, 

(81 IS THE AhOMALY THE RESULT OF AN IhFREOUEhTLY EXCERSISED 

PROVISION OF THE TAX COO�? IF SO# HILL THE IhCLUSSCN tF THIS 

PROVISION ~UFFICIE~VTLYINCREASE THE ACCURACY CF THE TAX 

MODEL kITHOU1 UNDULY CGHPLICATING THE USE CF THE MODEL? 

(C) IS THE ANOMALY THE RESULT Of AN ADMINf3TRATIVE PRACTICE 

EMPCGYEO BY THE INTERNAL REVENUE SERVICE? IF 800 HHAT ARE 

IHE CCSTS AND dfNEFITS OF INCLUOING THIS PRACTICE IN ThE 

TAX MCDEL? IF THE COSTS ARE PROHI8ITIVE, CAh 'PART GF THE 

BENEFITS eE CAPTURED AT A LOWER cost BY APPRCXIMATING 

ADMINISTRATIVE PRACTIC�? 

(0) IS THE ANOMALY THE RESULT OF TAXPAYER IGWRAtUCE? 

IF 90, HOW WILL THE ASSUMPTION OF RATrCNALITl AFFECT TbE 

TAX REVENUES GENERATED BY THE MODEL? 

(E) 13 THE ANOMALY THE RESULT Of A HATHEMATICAL ERRCR MAOE 

BY TbE TAXPAYER OR TAX PREPARER? IF 301 TbESE kERE 

CORRECTED, 

(F) 1s THE ANOMALY DUE TO ROUNOIlvG ERROR BY TFE TAX MODEL8 

THk TAXPAYER, OR TBE IRS? IF THE OI3CHEPANCY IFC FIIvAL TAX 

LIABILITY WAS ONE COLLAR OR LE^ TH~TAX LxmLIiY 

GENERATE0 pY THE TAX MODEL IS A8SUlrlED TO BE CICRRECT, 

(GI 19 ThtE ANOMALY UNEXPLAINABLE BY ANY OTF�R MEANS? IF SO, 

THE TAX MODEL HESUL13 ARE A8SuMEo TO 8E TRUE AND CORRECT, 
* 

I 

(1) CAPITAL LOSSES ARE LIMITED TO THE SMALLER CF THE ACTUAL 

CAPITAL LCSSi SlOOO (%SO0 FUR MARRIED FILING SEPEHATELY), OR 

TAXABLE INCLjWE, IF THE TAXABLE INCOME CONSTRAINT WERE 

INCURPCRATED IN ThE TAX CALCULATOR, THE TAX MCDEL WOULD eECOME AN 

ITtERATIVt PffUGRAM RATHER THAN A SEQU�NTIAL PECGRAM. ThfS wOCrL0 

IhCREASE THE CCMPLEXITY OF THE TAX MCOEL AND TI=� EXECUTION TIME 

FLR EACH TAX MOOEL kUh. THE RESbLTIhG BENEFIT ivOUL0 aE A SMALL 

INCREASE Ik THE ACCURACY OF THE ESTIMATES OF ACJUSTED GEGSS 

INCOME. CONSEQUENTLY, THE TAXABLE INCOME CCNSTRAINT WAS OPITTED 

FAOH TWE TAX CALCCILATOR Ah0 CAPITAL LOSSES ARE REFLECTED IN AGI 

WHEN TAXA~LEINCOME IS ma. THUS, TM AGGREGATE AGI CALCULATED 

BY THE TAX MODEL IS SLIGHTLY LOWEA THAN THE AGGREGATE AGI FQUNO GrU 

THE 1975 DATA BASE, 

(21 Oh SOME RETbRNS, THE CAPITAL LCSS LIHITATLCN hAS NOT BEEN 

CGRHECTLY APPLIED. OF THESE RETUHkS., CAPITAL LQSSES IN AOJUSTEO 

GROSS INCGME �XCEEO THE SlOOO LIMITATION, EACH R�TURN kAS 

CORRECTED TU REFLECT THE CURRENT TAX LAk. 

(3) CAPITAL LOSSES BELOh THE LOSS LIMITATIOk kAVE BEEN CALCULATED 

INCORRECTLY ON SOME RETURNS, Ih A FEh CASES, THERE HERE NO 

CAPITAL LUSSES.IN AGI WHEh THERE SHGULD HAVE BEEN. BOTk 

SITUATIQNS WERE CORRECTED IN ACCOROANCE WITH THE TAX LAk, 

(4) Oh SCHE RETURNS, THE EXCLUDED PORTICN GF LCNC TERM GAINS IN 

EXCtSS OF SHORT TERM LOSSES IS PROPERLY OMITTED FROM ADJUSTEO 

GHOSS INCOME BUT IS NOT PROPERLY IFCLUDEO CrU PCHM 4625 (YINIMUM 

TAXI. IT WOULD APPEAR THAT THE OMISSION CF EXCLUDED LGkG TERM 

CAPITAL GAIlvS FROM THE CALCULATIGN OF PREFEREhCE INCCME I3 OUE TO 

THE FACT TH4T ThESE RETURNS DID NOT BEkEFIT FRCM THE PREFER�kTIAL 

TREATMENT OF CAPITAL GAINS SINCE 

WERE LARGE �NOUGh TG MAKE THEIR 

THE AaSENCE OF THE CAPITAL GAIN3 

LIHITATICN ON AMOUNTS TREAT�D A3 

FOR A REDUCTION IN THE AMOUNT OF 

THEIR LOSSE8 FRCM OTHER SOURCES 

ADJUSTED GRCS3 INCOME NEGATIVE IN 

PROVISIONSe REGULATION 1.57-4, 

ITEMS GF TAX PREFERENCE, PROVIDES 

TAX OR PART

OF ANY ITEM OF TAX PREFERENCE RESbLTS 

MODIFICATIONS REQUIRED IJNOER SECTICN 

(Bl(2l--COMPUTATION OF hET OPkRATING 

N�CE$aARY FUR THESE COMPUTATIONS ARE 

REGULATION 1,5704 WA3 APPROXIMATED BY 

EQUATfCNS--

NOeErU f -AMINl(O,O,TINCI 

PREFERENCE kHEN ALL 

IN hG TAX eENEFIT OUE TU 

172 (C) CR 

LOSS, SIhCE THE DATA 

NOT AVAILABLE ON THE SAMPLE,

USING ThE PGLLGWING TW 

PRCF = PREFf t AMAXl(O,O, EXLCG m NOBEN) 

WHERE NO8EN IS THE EXCESS DEDUCTIONS, EXEHPTICNS, AN0 LOSSES 

OTHER THAh CAPITAL LCSSES, WHICh HERE NCT NEEDED 
i I 

TREASURY PERSONAL IkOIVIDUAL INCOME TAX MODEL. 27 JUN 78 2-78 

TO MAKE TAXA8LE INCOME GO NEGATIVE, 

NOL75 IS THE NET OPERATING LOSS FOR 1975, 

TINC I9 TAXA6LE INCOME BEFORE BEING CCNSTRAINEO TO 

ZERO, 

PREF IS TGTAL PREFERENCE INCOME 

PREFI IS TOTAL PREFERENCE INCOME NET CF EXCLUOED LONG 

TERM GAINS Ih EXCESS OF ShURT TERM LOSSES, 

EXLCG IS EXCLUOED LOhG TERM GAINS IN EXCESS OF ShCRT 

TEHM LOSSES, 

(5) ThERE EXIST SOME RETURNS NHERE THE EXCLUDED PORTIGN 'OF LONG 

TERM CAPITAL GAINS INCLUD�D IN PREFERENCE INCCPE IS LAAGER THAN 

THE EXCLUOED POHTIGN OF LONG TERM CAPITAL GAIhS CMITTED FROM 

AOJUSTEO GROSS INcGME, SINCE THIS SITUATION IS IMPGSY18LE, EACH 

RETURk WAS CORRECTED SO THAT THE CORRECT AMOUhT Cf EXCLUDED LONG 

TERM CAPITAL GAINS ARE INCLUDED IN PREFERENCE INCCME, 

(b) ON ThE OThER hAND, THE EXCLUDED PGRTIOh CF LChG TERC CAPITAL 

GAINS I~vCLUOEOIN PREFEREhCE INCOME IS SMALLER THIN THE ExCLUDEO 

PORTIGN OF LONG TERM CAPITAL GAINS UMITTEO FRCM AOJUSTEO GROSS 

INCOME ON OTHER R�TURN9, THIS ALSO THE IS RESULT OF REGULATION 

lmS7m4 AND WAS TREATED THE SAME AS ITEM 4 ABGVEr 

ti) ON SOME RETURNSt THE CALCULATION OF ThE MINIMUM TAX IS 

MATHERPATICALLY INCGRRECT. ON OThER RETURNS, THE MINIMUP TAX AS 

CALCULATED BY THE TAX KDEL IS PLUS CR MINUS 1CNE DOLLAR FRCM THE 

MINIHUC TAX FOUIVD Oh THE 1975 DATA BASE, ThE TAX MODEL RESULTS 

kkRE USE0 IN 8CTH OF THES� CASES. 

(8) Oh SOME MINIMUM TAX RIiTURN9r THERE IS A FIGURE FOR TtTAL 

PGEFEREhCE INCOME BUT NO COMPONENTS FOR TOTAL PAEFEREIvCE INCOME, 

CUNSEGUENTLY, PREFEriENCE INCOME NET OF EXCLUDED LONG TERM CAPITAL 

GAINS IN �XCESS OF SHORT TERM CAPITAL LOSSES kAS $ET EQliAL TO 

TOTAL PREFERENCE INCOME, THIS FaRm THE TAX MOO~L TO CALCULATE 

THE CGRRECT MINIMUM TAX, HOwEVER, THESE RETURhS WILL BE 

UNRESPCNSIVE TO ANY CHANGE IN THE OEFINITION ICF PREFERENCE INCOME, 

(9) Oh OTHER MINIMUM TAX RETURNS, THE TOTAL FCR PHEFEREhCE INCOME 

DOES NCT EQUAL THE SUM CF IT9 COMPCNENTSm THE TaTAL COMPUTED BY 

ThE TAX MGOEL REPLACE0 THE TOTAL FOUNO GN THE 1.973 DATA BASE, 

(101 SCWE RETURNS 010 NOT BOTHER TO FILE A MIhIMUM TAX RETURN 

ALTHOUGH THEIR EXCLUOED LONG T�fM GAIhS NERE kELL IN EXCESS OF 

S30,OUO Ah0 THEIR TAX LIABILITIES kERE POSITILEo APPARENTLY# 

THESE RETURNS hAVE hOT BEEN AUDITED AND WILL FILE A MINIPUM TAX 

RETURh NhEN AUOITEDm THEREFORE, THE RESULTS iCF THE TAX MODEL HERE 

USED 

(111 RETURNS WHICH HAVE NO FORM OF DEDUCTION, IoEm AOJUSTED GROSS 

INCOME 13 LESS THAN OR EQUAL TO ZERO, ARE CLA3SIFIED A9 STANDARD 
. TREASURY PERSONAL IhDIVIDUAL INCCME TAX MODEL. 27 JUN 78 2-79 

I 

DEDUCTION RETURhUS* 

(I21 Th� 1975 DATA BASE APPARENTLY CCNTAINS SCME LATE GR AIwENDED 

RETURhS FILEO liNDER A TAX CODt OTHER ThAh TI-� 1975 TAX CCDE (THERE 

AHE DEFINITELY SOME RETbRNS FILED UkCER ThE 1973 TAX CCCE]. WHkh 

ThESE RETURNS ARE PROCESSED BY THE TAX CALCbLATGR, THEY SkITCH 

FROM TN5 PERCENTAGE STAtvDARO UEDUCTIGIU CR THE LUk IhCCPE ALLOWANCE 

Til THE MINIMUM 8TANOARO OEDUCTION klTH AN ACCCPfPANYIhG LOS3 IN 

REVENUE AND ThE NUMQER CF TAXABLE RETURNS. Tb� ALTERNATIVE, 

HOW�VER, NOULO BE TO INCLUD� A SEPERATE TAX CALCbLATOR FOR THE 

LATE CR AMMENDEO RETURNS, SINCE THIS ALTERhATIVE UNDULY 

COMPLICATES ThE US� OF THE TAX MQUELr EACH LATE OR AMMEhOED 

RETUR)U'S TAX LIABILITY kAQ RECALCULATED UNDER THE 1975 TAX CODE, 

(131 THERE ARE A NUMBER OF RETURNS WHICH hAO ZERD OfOUCTIaNS AN0 A 

PUSlTIVE TAX, APPARENTLY, THE INDIVIOUALS FILING THESE RETURNS 

WERE IGNORANT CF THE DEDUCTIONS THEY CCbLO CLAIM, ' ALL RETURkS OF 

THIS VARIETY WERE IMPUTED A RATHER LARGE 00SE ICF RATIONALITy IN 

SPITE CF THE FACT ThAT IT IS PROBABLY NOT WARRANTED, 

(141 SCME MARRIED FILING SEPERATE AND JOINT RETURNS TOOK THE 

PERCEkTAGE STANOARD DEDUCTION WHEh IT WAS MCRE AOVANTAGECUS FOR 

THEM TC TAKE THE MINIMUH STANOARO OEDUCTION, IN THESE CASES, THE 

MINIMUP STANDARO DEDUCTION WAS �MPLOVED, 

(151 TPERE ARE A FEk RETURNS WHOSE TOTAL ITElrSZEO DEDUCTIONS HAVE 

BEEN SbMMEO INCCRRECTLY, THESE hERE THE RESULT GF SMALL 

MATHEHATICAL �RRORS IN CALCULATEON OF lr�OICAL DEOUCTIONS AN0 h�RE 

EASILY CCRRECTEO BY ThE TAX MOOEL PROGRAM. 

(161 IN SPITE OF THE FACT THAT THERE I3 A LINE ITEM ('5) Ck 

SCH�DuLE A FOR THE 8ALANCE OF WEOICAL INSURANCE PREMIUM3, A LARGE 

NUMUER OF TAXPAYERS HAVE PERTINACIOUSLY REFUSED TO TAKE ADVANTAGE 

OF TH13 ITEM AND HAVE LEFT LINE 5 BLANK. THE BALANCE CF MEDICAL 

INSURAhCE PR�MIUMS WAS RECONSTRUCTED FOR THESE RETURNS. ON THE 

AVERAGE, THE TAX LIA8fLITY OF THESE RETURNS WAS OECREAS�D BY A 

SMALL AMOUNT, 

(171 SGME RETURNS ELECTED TO JTEMZZE kITH DETAIL RATHER THAN 

ChOOSE THE STANDARD DEDUCTION WHICH WOULD HAVE YIELDED A LOhER TAX 

LIAdILITY, THIS MAY BE OUE TO THE PARTlCULAR lNOIVIDUAL 

ATTEPPTING TO VINIMIZE hIS OVERALL TAX LIABILITY, I,�, FEDERALi 

STATE AND LQCAL. IN SOME SITUTATIONSI STATE CR LOCAL TAX 

THEATPENT OF DEDUCTIONS IS MORE LIBERAL THAN THE FEDERAL 

GGVERNCENTS BUT TO TAKE AOVANTAGE CF THESE PQGE LIB�RAL 

TREATCENTS, THE INDIVIDUAL MAY B� R�QUIREO dY THE STATE OR LOCAL 

GOVERkPENT TO ITEMIZE GN HIS FEOERAL TAX RETURN* IF ThESE 

PROVISIONS ARE SUFFICIEBTLY LIBERAL, THE INGIVIULAL CAN IrINIMlZE 

HIS OVERALL TAX LIAdILITY BY PAYING SOME FEOERAL TAX IF( ORDER TO 

ITEMIZE AT THE STATE OR LOCAL LEV�L AND THEREBY SAV� HCRE AT THE 
TREASURY PEHSONAL INDIVIDUAL INCOME TAX MODEL. 27 JUN 78 2-80 

STATE OR LOCAL LEVEL THAN HE PAID IN TAX�$ AT THE FEDERAL LEVEL, 

IN AOOITION, THERE ARE TkO SITUATIONS MhERE TkE FEDERAL TAX CODE 

FClRCES AN INDIVIDUAL TO ITEMIZE EVEN IF IT IS hOT TO HIS 

ADVANTAGE, 

(A) Ah INDIVIDUAL hHO IS MARRIED FILING SEPERATELY FUST 

ITEMIZE IF HI3 SPOUSE ITEMIZES, AND 

(E) A MINOR CHILD wITH UNEARNED INCOME MAY NCT USE THE 

MINIMUM STANDAt4D DEDUCTION Ah0 TH�REFORE, MUST USE 

THE PERCENTAGE STANDARD DEDUCTION OR ITEFLZE, ThERE ARE 91 

SAMPLE RETURNS OF THIS TYPE, ALLOkING THEM IC CHANGE TC THE 

STANDARO DEDUCTION hauo LOSE tu MILLION OOLLARS aF TAX REVENUE. 

SINCE THERE ARE VALID EXPLANANTIONS OF kHY ThE3E RETURNS ITEMIZED 

AND SINCE THE MAGhITUDE OF THE REVENUE LOSS IS 9UE8TANTIAI.t THE$� 

R�TURNS HERE RETAINED AS "PERMANENT" ITEMIZERS, 

(18) SCME RETURhS ELECTED TO ITEMLZE WITHOUT GETAIL, ThERE ARE 17 

SAMPLE RETURNS OF THIS VARIETY IN THE 197s TAX HGOEL DATA em. 

THE 197s TAX CALCULATOR wau.0 AUTGMATICALLY CHANGE THESE RETURNS 

TU STANDARD OEDUCTCRS hITh AN ACCQWPANYING 2 MILLION OCLLAR GAIN 

IN CZEVEkUE, SWE THESE RETURNS ARE ITtiMItER3 AND SINCE THE 

REV�NUE GAIN I3 SUESTANTIAL THEYE RETURIUS WERE RETALNED AS 

"PEHMANENY" ITEMEZERS, 

(19) RETURNS hHICH USED THE TAX TABLES TO CALCULATE THEIR TAX 

LIAbILITY MAY HAVE A TAX LIAeILITY CALCULATED BY THE TAX MGDEL 

THAT DIFFERS BY AS MUCH AS PLUS OR MINUS 56, SINCE THE USE aF TAX 

TABLES IS AN IMPRATICAL COMPUTATIGNAL METHOD CF OETERMIkNfNG TAX 

LIA~ILITY, THE TAX CALCULATUI ev THE MooEL'g TAX SCHEOULES WAS 

US�O IN LIEU OF ThE TAX APPEARING ON THE 1975 OATA BASE, 

(20) SCME RETURNS NHICH USED TH� TAX T68LE.9 PERFGRMEO A 'TABLE' 

LOOK-UP' ERROR. THIS RESULTED IN THEIR 1?75 TAX LIAeILITY BEING 

DIFFERENT THA~THAT CALCULATED BY TRE TAX HCOEL, THE SLZE OF THE 

ERROR HERE IS USUALLY GREATER THAh $6. THESE ERRORS NERE 

CORRECTED BY THE TAX MaDEL, 

(21) LINE 31 ON F*ORW 1040, IeEr PENSIONS, ANNUITIESt REhTSr 

RQYALTIES, PARTNEASHIPSr ESTATES OR TRUSTSt ETCrt 010 NOT EQUAL 

THE 3UM OF THE SAME COPPONENTS FROM SCHEDULE Ea SUMPING THE 

COMPONEkTS FROM SCHEDULE E ALWAYS PROUUCED THf CORRECT AGI, 

TkEREF[;RE, LINE 31 hA8 REPLACE0 WITH THIS 9liMm 

(22) THE MAXIMUM TAX REQUIR�S THAT THE TAXPAYER OFFSET HIS EARNED 

TAXABLE INCOME kITH THE EXCESS Of THE LARGER 4F HIS CURRENT YEAR 

PREFERENCES CR ONE-FIFTH OF HIS PREFERENCES OVER THE LAST 5 YEARS 

OVEH $30,000. Th� ONE-FIFTH OF PREFERENCES CVER THE LAST 5 YEARS 

WAS RECGNSTRUCTED FROM THE DATA FOR THE 1925,SAMPLEr 

(25) SCME RETURNS WERE LI8ERAL IN RUUNOINC THE RATIO OF ADJUSTED 

EARNED INCOME TO AOJUSTED GROSS INCOME. FOR HLGH INCOME RETURNS, 
43URy PERSONAL IhDIVIDUAL I 

I 

ICOWE TAX MODEL, 7 JUN 78 2-8 1 

THIS ROUNOING CGULO SAVE lH� TAXPAYER AS MUCH AS $1000 IN TAXES, 

THE TAX MGDEL'S RATIO, ikHICti IS UNROUIVDED hAS USED, 

(24) Tb�RE WERE ALSO 3GME RETURNS TH4T MAOE MAThEMATXCAL ERROHS IN 

CALCULATING TRE MAXIMUM 9 ALTERNATIVE TAX. ThE TAX MGOEL RESULTS 

WEHE ErJFLOYED. 

(25) THERE kEHE AT LEAST FOUR RETURNS WHERE TbE PAXIVUP-ALTERNATIVE TAX ON LINE 3U OF FORM 4726 DID NOT AGREE kITb THE TAX 

ON LINE 16A OF FORM 1040. THE TlnO TAXES ARE CCNCEPTUALLY IDENTICAL 

AN0 SHCULD BE IDENTICAL IN THE OATA AS WELL. SINCE TH� TAX MODEL 

REPRODUCE0 LIN� 834 OF FCRM 4726 EXACTLY, THIS FIGURE WA3 USE0 FOR 

LINE 1bA OF FORM 1040. 

(26) SCPE RETURhS DID NCT ELECT THE SAVINGS FRCM THE ALTERNATIVE 

TAX, IN ThESE CASES, The TAX SAVINGS WERE SHALL, kVICEhTLY, AN Sa 

REOUCTION IN TAAES 18 NaT WRTH THE EFFCRT GF FILING AN 

ALTERbPTIVE TAX kHEN YOUR AGI IS OVER S100,OOO. NEVER-THE-LESS, 

THE MGOEL'S RESULTS kERE EMPLOYED, 

(27) SlCME RETURNS DID NGT CLAIM ThE EARNED INCCME CREDIT ALTHOUGH 

THEY QUALIFIED. ON CTHER RETUANSi TH� EARNED INCCME CREDIT HAS NOT 

CALCULATED CORRECTLY, Ik BOTH CASES, THE TAX MCDEL RESULTS WERE 

USED, 

(281 CN A NUMBER OF RETURNS THERE �XISTS A MATHEMATICAL ERROR XN 

SUBTRACTIhG THE CREOITS FROM TAX BEFORE CREOIT3, SINCE THE FINAL 

TAX CALCULATED BY THE MGD�L AGREES HITH THE DIFFERENCE BETWEEN 

INCOME TAX wITHhELD AN0 AMOUNT OF G\ERPAYMEhT, THE TAX CALCULATED 

BY THE t"was USED, 
TREASURY PERSONAL' INDIVIDUAL INCOME TAX MODEL. 27 JUN 78 2-82 

APPENDIX C 

TABLES Z.C.1, z.C.2, AN0 2.C.3 PRESENT A CCNPPRISON CF THE 197s 

TAX WCDEL WITh TH� PRELIMINARY 1975 3fATISTICS OF INCOME FOR ALL 

RETURNS, TAXA~LE RETURNS, AN0 NQk-TAXABLE RETLRNS. THE PERCENT 

ERRUHS FOR AGI, TAXABLE INCOME# AN0 TAX LIAdILITY INCLUGING 

MINIMUP TAX ARE AS FOLLGHSt 

ALL TAXABLE Noh-TAXABLE 

RETURNS RETURNS RETURNS 

ADJUSTED GRCS3 INCOME -0oI9X -.,33% t2.SX 

TAXAHLE INCCHE -0.12% -0.17% 5.7% 

TAX LIABILITY -0.15% -0.15% 0.0% 

ALL RETURNS: 

THE 9011RCE3 OF INCOME TABULATED 8Y THE MODEL kERE WITHIN + Off - 2% 

OF THE 1975 801 FIGURES EXCEPT FOR­

(A) FPRM INCOM�r.r19.U%: THIS I3 A NET FIGURE. 

(8) REhT 8 ROYALTY INCGP�p 04.4%: THIS IS A hET FIGURE. 

(C) PARTNERSHIP 8 SUB, 3 INCOME, -6.5%: THIS I3 AL3G A NET 

FIGURE. 

(0) ESTATE 8 TRUST3 INCOMEI +904%Z THIS TOC IS A NET FIGURE. 

(E) OTHER SOURCES OF INCOMEP -3% 9 

ThE VALUE OF EXEffPTIONS TABULATED BY THE TAX PODEL WERE WITHIN 

LESS THAN 1% OF THE 1975 SO1 FIGURE3 EXCEPT FCR 8LIND EXEMPTIONS 

rlHICH k�RE 11.8% HIGH. 

ITEMLfED OEOUCTIONS AS TABULATED BY THE MOOEL kERE ALL kITHIN LESS 

Th4N + OR - 1% aF ThE 1975 301 FIGURE3 EXCEPT FOR MEDICAL(+2,3%)r 

CASUALTY AN0 THEFT(+t,6X) AN0 MISCELLANEOUS(~9,4XI . TAXABLE RETURN38 

THE RESULT3 FOR fAXA6LE RETURN3 ARE? IN GENERAL, BETTER THAN THE 

RESULTS FOR ALL RETURNS. FARM INCOME IS ONLY 9.7% LOk AN0 

PARTNERSHIP 8 SUB. 3 INCOME 13 ONLY 1.7% LOW . RENT g RaYALiY 

INCOME (-2,sx) AN0 ESTATES 8 TRUSTS INCOME (+.6.7%) AL3O HAVE 

SMALLER PERCENTAGE ERRORS ThAN 8EFORE. GN� 4DCIfY IS THAT OTHER 

SOUHCES CF INCGHE IS 37.52; LOWr I�. 1.3 B1LLI.CN OGLLARS. THIS 13 
TREASURY PERSONAL IhDIVIDUAL INCOME TAX MODEL. 27 JUN 78 2-03 

I 

DUE TC PART TO THE FACT ThAT ACCOAOING TO THE 1975 PRELIMINARY 

SOI--TAXPULE RETURNS SHOW AN OTHER INCCME THAT IS 3 TIMES AS LARGE 

AS TH� GTHEH LOSS ON NQh-TAXABLE RETURNS, THIS TREND 13 NOT 

EXHIBITED IN THE DATA OBTAINED FWM THE SOI, 

ITEMLZED DEDUCTIONS hERE ALL WITHIh LE33 THAN + CR - 1%OF THE 

1975 SCI FIGURES EXCEPT FGR CASUALTY AN0 THEFT (+~.e%l, WHICh IS 

3OMCkHAT kORST, AND MISCELLANEOUS (-902%) khICH IS 3CMEhhAT 

BETTER, MEDICAL OEOUCTIONS IMPROVED DRASTICALLY BY ORGPPING FROM 

t2.3x TO to73xo 

THE RESULTS FOR Noh-TAXABLE RETURNS DIFFER ORASTICALLY FROM THE 

RtSULTS FOR ALL RETURNS. NONE OF THE PERCEIvTACE ERROffS hERE hITHIh 

t OH - 2% OF THE CORRESPONOING SO1 FIGURES, TbE PERCENTAGE ERRORS 

ARE bS FOLLUWS: 

(AI hAGES AND SALARIES, t503%, 

(E) RENT 8 ROYALTY INCCM�, +258%: THIS IS A hET FIGURE. 

(FI PARTNERShIP 8 SUB, 3 INCOM�;r -25%: TH13 IS A NET 

FIGURE, 

(GI ESTATES 8 TRU3TS INCOME, +57%1 THIS IS A KET FIGURE, 

(HI ALL OTHER INCOME8 -IIu%. 

THE STANOARO DEDUCTIONS TAflULATEO 8Y THE TAX WGOEL HERE 608% 

LARGER ThAN THE SOI FIGURES, HOhEVER, THE TAX MCOEL CALCULATES A 

STANOARD DEDUCTlON FOR "NO AGI" RETURNS EVEk THOUGH THE SO1 DOES 

NOT 0 

THE PERCENTAGE ERRORS FCR ITEMIZED DEDUCTIOIvS h�RE ALL LESS THAN 

2% EXCEPT FOR­

(A) TAX EXPENSE# -3,5%, 

(8) MEDICAL DEOUCTIONS, +9oSXo 

(Cl KISCELLAN�OUS DEDUCTIONS, -12,5%o 

ANALYSIS OF THE NET PRCFIT OR L03S FIGURES: 
\ 

TREASURY PERSONAL IROIVIOUAL INCOME TAX MODEL. 27 JUN 78 2.84 

DUE TO THL SIzEAeLE PERCENTAGE ERRORS CN SCCE ICF THE NET PROFIT GW 

LOSS ITEMS8 Ah ATTEMPT WAS MADE TO TO COMPAGE THE PRCFIT AN0 LOSS 

FIGURES GENERATED BY THE TAX MUOEC hITH TWSE PRESEhTEO IN THE 

PRELIMI~ARY 1975 STATISTICS OF INCCME. Tn13 OCMPARISON I3 

PRESErUTED IN TAtlLE (z.C.Uo UNFORTUNATELYi Tr(E PRELIMINARY 1975 SGI 

LACKS MORE THAh HALF OF ThE PROFIT AN0 LGSS ITEMS THAT ARE NEEDED 

FOR THIS COMPARISON. 

NON-FARM BUSINESS INCOME. 

ALTHOOGH NET NQhmFARM INCOME WA3 233% LOh FGR ALL RETURNUS, TABLE 

2,C.U SHOW9 TkAT TH� TAX MOOEL 18 1.6% LOW &Oh PHCFITS AhO 13.9% 

HIGh ah LOSSEJ. TAXA8I.E RETUHNS HA0 A NET Noh-FARM INCCtrE THAT 

WAS 1.6% LOW, HGNEVER, THE PROFIT AND LOSS FIGURES ARE 103% LOW 

AND 3,4% HIGH. NON-TAXABLE RETURNS FAR� MUCH BETTER. NET 

NGN-FARM INCCME OF NUN-TAXABLE RETURNS WAS LON BUT THE PROFIT 

AND LOS8 FIGURES ARE 4.9% LOW AND 4,3X h1GH RESPECTIV�LY. 

FARM INCOME. 

FARM INCOME SHOk3 SOME IMPROVEMENT WHEN THE PROFIT Ah0 &OS3 

FIGURES ARE EXAHIN�O. TH& )uET FARM INCGWE ICF ALL RETURNS kA8 

19.4% LOW, THE CORRESPCNDING PROFIT AN0 LOSS FIGURES WERE 5.6% 

LOW AN0 3.2% hIGH. TAXABLE RETURNS HA0 A N�T FARM INGCME THAT WAS 

907% LCh8 HOH�VERt THE PROFIT Ah0 LO33 FIGURES ARE 6% LOh AhO c3% 

LOW, kON-TAXABLE RETURNS HAD A NET fARM 1NOC)rE THAT WAS 19% LDW, 

ThE PRCFIT AN0 LOSS FIGtiRES WERE :3.U% LOW Ah8 6*6% HIGH. IN 

GENERAL, FARF, LOSSES ARE CONSISTENTLY OVERSTATE0 ON THE fAX MOOEL, 

NHILE FARM PROFITS AR� CONSISTENTLY UNOERSTATED ON ThE TAX MODEL. 

SUMMATION. 

ALTHOUGH THE TAX MODEL YIELDS ACCEPTAULE RCSULTS FOR AGI, MOST 

DCDUCfIONSp TAXABLE INCOME, AND TAX LIABILITY, THE PERCENTAGE 

ERRORS FOR THE. NET INCOME FIGURES 8EEM LARGER THAN Oh� kCULO 

EXPkCT. AT THIS TIME, IT IS NOT KNOWN kUHETHER THIS IS A RESULT GF 

OTA’S SAMPLING TECHhIQLIE, A PECULIARITY OF ThE 1975 OATA BASE 

SUPPLIEO BY IRSr OR THE TENATIVE hATURE OF TH� PRELIFINkRY 1975 

$01 FIGUR�So 
I 

NUMBER OF RETURNS 

ITEM IZEO 

STAlvDARO 

90URCES OF INCGME 

WAGES 8 SALARIES 

DIvIoENoa a,�. 

INTERE3T 

NUN-F ARM INCOME 

FARM INCGME 

RENT & ROYALTY 

PARTNERSHIP 8 SUB, S 

CAPITAL GAINS 8,C. 

ESTATES B TRUSTS 

P�NSIONS 8 AhhUITIES 

ALL CTHER sauRcEs * 

AOJUSTMEhfS TG INCCME 

AOJUSTED GROSS INCCME 

EXE~PTICNS, TOTAL 

TAXPAYER 

AGED 

0LINO 

OTH�R 

STANOARO O�DUCTIONS 

ITEMLZED OEOUC710NS 

CHARITABLE CONTRIBUTIGNS 

INTEREST PAID 

TAX EXPENSE 

MEDICAL DEDUCTIONS 

CASUALTY OR THEFT 

OTHER MISC DEOUCTIONS 

TAXABLE INCOME 

INCQME TAX AFTER CREDITS 

82,221 +44 

25,954 -102 

56,267 +146 

795,486 t275 

23,453 N,A. 

43,585 tZbL 

38,574 -927 

2,aw -709 

5,034 -a34 

12,297 .-as 1 

29,226 NeA, 

2,780 t238 

21,274 +400 

21265 -72 

14,935 -147 

946,2329 -1 76s 

160,166 +lrZib 

94,642 -220 

7,526 t7s 

181 +19 

55,817 -660 

102,555 +1,633 

122,095 +217 

is ,382 -44 

38 I 7 183 +91 

43,924 -186 

lit685 t271 

1,241 +3z 

11,150 -l,lS7 

594,901 -725 

124,57b -182 
NUMBER OF RETURNS 

I VEMI ZED 

ST AIUOARO 

SOURCES OF INCOME 

WAGES & SALARIES 

DIvIOENOS 8.E. 

INTEREST 

NON-FARfl INCGME 

FARM INCOME 

RENT 8 ROYALTY 

PARTNERSHLP Y Sb8a S 

CAPITAL GAINS BaC, 

ESTATES 8 TRUSTS 

PENSIONS 8 ANIUUITIES 

ALL CTHER SCIURCES 

ADJUSTMENTS TO INCQME 

ADJUSTED GROSS INCOME 

EXEMPTIONS, TOTAL 

TAXPAYER 

AGED 

BLIND 

OTHER 

STANOARD DEDUCTIONS 

ITEMIZED DEDUCTIONS 

CHARITABLE CONTRIBUTIONS 

INTEREST PAID 

TAX EXPENSE 

MEDXCAL OEDUCTIONS 

CA3C;ALTY OR THEFT 

OTHER MI3C OEOUCTXONS 

TAXABLE IFtCOHE 

INCOME TAX AFTER CREDITS 

61,tZO 

24,1388 

36,833 

799,250 

22,031 

38,488 

39,530 

4,6lJ3 

5,088

is, 19s 

24,250 

2,570 

t8,eei 

2,116 

13,201 

096,740 

122,643 

73,635 

4,998 

108 

43,992 

70,008 

114,216 

14,227 

36,242 

42,408 

9,343 

1,043 

10,457 

5e9,9a3 

124,576 
I I 

TREASLRY PERSONAL INOIVIDUAL INCOME TAX MODEL. 27 JUN 78 2-87 

I 

TA8LE 2,CW3: CGMPARISCN OF tH� 1975 TAX MODEL WITH THE 

PRELIMINARY 1975 SOI, NCN-TAXABLE RETURNS 

~*o~m~.~.~~o~m~oomom~~owmmw~ommwoow~mowowm~moomowoooow 

ITEM MODEL so1 DIFF 0~w~~~ww~~~m10~~~m~~00mw~0mwmw-00mwmm0wmmw0w~-m-m~mw0 

hUMEER OF RETURNS 

IfEV I ZED 

STANCAR0 

SDURCES OF INCCHE 

WAGE3 8 SALARIES 

DIVIDENGS 6mEe 

IhTEREST 

NUN-FARM INCOPE 

FARM INCOME 

RENT 8 ROYALTY 

PARTNERSHIP 8 SUR. 

CAPITAL GAIN3 BwCe 

ESTATES 8 TRUSTS 

PENSIONS 8 ANNUITIES 

ALL OTHER SOURCES 

ADJUSTMENTS TO INCGME 

ADJUSTED GROSS fNCQM� 

EXEHPTIONSr TOTAL 

TAXPAYER 

AGE0 

8LIhD 

OTHER 

3TANDI)RO OEDUCTIONS 

ITEMIZED OEDUCTIONS 

CHARItA6LE CONTRIBUTIONS 

INTEREST PAID 

TAX EXP�NSE 

MEDICAL DEDUCTIONS 

CASUALTY OR THEFT 

.OTHER M13C OEOUCTIONS 

fAXA9LE INCCME 

INCOME TAX AFTER CREOITS 

t1,000 t576 

1,565 +4e 

19,434 +527 

46 a39 +z ,1353 

1,421 NeAm 

5, 100 +460 

I 044 -3 12 

-1r7J.6 -276 

-54 t08 

-2, 898 -504 

1,976 NwAe 

210 i76 

2r4t3 tl88 

149 -1200 

1 ,7134 +a3 

49,582 t 1 I 2 1.1 

35,524 -10,668 

23,007 NeAe 

2,528 NeAe 

7u NmAw 

llr9t.5 h*Ar 

32rs47 +Z109t 

7,878 +lo 

656 -2 

2,470 -39 

1,521 -55 

2,8342 +204 

197 -1 

692 -99 

4,978 t270 

0 0 
, TREASliGY PERSONAL INDIVIOUAL INCOME TAX MUOEL. 27 JON 78 z-aa 

TABLE ZoC.4: COMPARISON OF THE 1975 TAX P1ODEL NET INCOME 

ITEMS ~ITHTHE PRELIMINARY 197s sax ET 

NET INCOME ITEMS FUR ALL, TAXABLE, AkO 

NGN-TAXABLE RETLRNS, 

ALL RETURNS: 

eusxms 44,010 

FARW 9,s~ 

PARTNERSHIP 170635 

SUBChAPTER S 3,923 

RENT 81Of7 

ROYALTY 1,72b 

ESTATE 8 TRUSTS 2,922 

TAXAeLE RETURNS: 

8USlN�$S 40r22L 

FARM 

PARThERSHIP 

SUEChAPTER S 

REk 1 

ROYALTY 

ESTATE 8 TRUSTS 

NON-TAXABLE RETURNS: 

BUSINESS 

FARM 

PARTNERSHIP 

SUBCPAPTER S 

RENT 

RUYALTY 

ESTATE & TRUSTS 

7,850 

16~975 

3r6a3 

70038 

1,599 

2,681 

4 3 , 780 

1.689 

660 

230 

1oto 

127 

241 

NOTE: N.A. s NOT AVAILABLE 

f AFTER EXCLUSION 

e.: TAXABLE PORTION ONLY 

c :COMPUTED 
TREASClRY PERSONAL INOIVIDUAL INCOME TAX MOOEL, 27 JUN 78 3- 1 

3. EXTRAPOLATION OF THE XNCOME TAX DATA, 

3.1. EXTRAPCLATICN OF THE DATA BASE TG 1978 LEVELS 

THE TREASURY INDIVIDUAL INCOME TAX MOOEL USES A FILE aF 50,000 TAX 

RETUHlvS FUR THE LIAdILITY Y�AR 1975, THE RETIJRNS ARE OAAMN FROM 

THE LARGER ISTATISTiCS OF INCOME' FILE, hHICH IS ITSELF A 

STRATIFIED SAMPLE BASED ON VARIOUS INCOME, G%GRAPHICAL, AND OTHER 

CLASSIFICATIQN$. A3 A REJULTi THE 50~000RETLRNS IN THE TREASURY 

MOOEL HAVE VARYING SAMPLE WEIGHTS, MOST OF kHICH ARE NOT INTEGERS, 

AN0 WHICH RANGE FROM 1 TO ABOUT *30,000. WITH THESE h�IGHTS,TH� 

SAMPLE REFLECTS A 1975 POPULATION 1GF 82,221 MILLION RETURNS, WITH 

A TOTAL ADJUSTED INCOME OF 5946,348 BILLION, 

THIS SECTION OESCRJBES THE PROCESS UY hHICH TREASURY CREATED, FRCF 

THE 1975 FILE, A SIMILAG FILE REFLECTING 1978 LEVELS OF IlvCOME AFJC 

1978 LAW, SINCE MAY 1978, THE 1978 FILE HAS PROVIDED THE DATA FOR 

MOST OF OUR ROUTINE USES OF THE TAX MODEL, 

THE PRCCESS WAS ESSENTIALLY THE $APE AS THAT b9ED TO PACOUCE THE 

1976 AND 1977 TAX MOOEL FILES, 

3.1.1, TARGETS 

FOR TFE LIABILITY YEAR /978, HE EXPECT 88,s MILLION RETURNS kITH 

TOTAL AOJU3TED GRO38 INCOME OF $11250 BIllDCk, THE 1978 FILE 

REFLECTS THE8E ESTIMATES. hE HAVE ALSO OEVELCPED PROJECTFONS OF 

SEV�RAL SOURCES OF INCOME AND OTHER AGGREGATES, hHICh ARE ALSO 

R�FLECTED IN THE 1978 FILE, THESE ESTIMATES ARE CALLED ~TARGETS.~ 

THEM ARE 11 OF ThEM AND THEY ARE LXSTEO IN TABLE 301,1, 

THE TARGETS WERE DEVELOPE0 BY MEMUERS GF THE REVENUE ESTIMATIhG 

STAFF IN THE OFFICE OF TAX ANALYSIS. ThE TARGETS HERE CEVELOPED 

MAINLY 8Y TIME SERIES TECHNIQUES, INCLUDING REGRESSICNS )OF 

'STATISTICS OF INCOME' DATA AGAINST NATIONAL IhCCHE ACCCUNTSr AhO 

WERE INTENDED 19 tlE CONSISTENT hITH THE SHOHT-ffANGE ECONCMIC 

FORECASTS UNOERLYING THE FEOERAL BUDGET FOR FISCAL 1979, THE 

TARGETS WERE NOT ESPECIALLY SENSITIVE TO THE CbOICE OF ECGNCMIC 

FORECASTS USED SINCE ONLY A F�W HQNTHS Of PRGJECTIOIVS WERE 

REQUIRED, 

IN CH0133ItdG THE ITEMS FOR WhICW TARGETS WERE AEEDED, ME RELIED ON 

INTUITION AN0 EXPERIENCE. OUR FIRST RULE WAS THAT AN ITEM SHOULD 

NOT BE TARGETED UlvLESS OUR TIME SERIES TECHNIQUES SEEMEC LIKELY Ti0 
TREASURY PERSONAL IhOIVIDUAL INCOME TAX MODEL, 27 JUN 78 3-2 

TABLE 3.1.1 

TARGETS USE0 IN EXTRAPQLATING THE TAX MODEL TC 1978 LEYELS* 

1 

2 

3 

4 

5 

4 

7 14 

8 20*29 

9 55 

10 82 

11 170 

hUfl6ER OF SINGLE RETURlvS 

NUMBER OF JOINT RETURNS 

NUMBER OF MARRIED-SEPhRATE OR 

SURVIVING=SPOUSE R�TURNS 

NUMeER OF WEAD=OF=HO~SEHOLO 

RETURNS 

NUMBER OF TAXPAYER Ah0 

O�P�NRENT EXEMPTIONS 

NUMBER OF AGED AN0 BLLIvO 

935,s 

45.0 

2.0 

6.0 

209.0 

EXEMPTXOhS 11w3

ADJUSTED GROSS INCGME 

DEFICIT)

PENSIONS IN ADJUSTED 

INCOME 

NET CAPITAL GAIN3 IN 

GROSS INCGME 

XNVESTMENT CRfOIT 

&ARNED INCOME CREDIT 

(LESS 

l,Zf0,000 

GkCS8 

t36tOOO 

4CJUSTED 

201223 

2b25 0 

1106.0 

OFFICE OF THE SECRETARY OF THE TREASURY HAY 101 1978

OFFICE OF TAX ANALYSIS 
I , 

TREASURY PERSONAL IhOIVIDliAL INCOME TAX WIOEL, 27 JUN 78 373 

GIVE A BETTER PROJECTIOh THAN THE FIRST-STAGE EXTRAPCLATION a 

DESCRIBE0 8ELOW, IN OTkER WORDS, hE SHGULD KWh MORE THAN THE 

COMPUTER, ON ThIS PR1hCIPLt;r FOR EXAMPLE, &E 010 NOT T#RGET ANY 

ITEMIZED DEDUCTIONS, 

MORk TARGETS MIGHT HAVE REEN OESIRABLE, POSSIBLY INVOLVING FARM 

INCUMrt, PREFERENCES, CR NUMBER aF TMO-EARNER FAMILIES, 

THE FIRST STEP IN THE EXTRAPOLATION PRGCESS hAS OESIGNEO TO REACh 

TH� TARGETS FOR NUMeER OF RETURNS BY FILING STATUS, AND TOTAL 

ADJUSTED GROSS INCOME, THIS CONSfSTED OF SIMPLY MULTIPLYING THE 

SAMPLE WEIGHT OF tACH RETURN 8Y A FACTOR BASEC Oh FILING STATUS 

AND MULTIPLYING EVERY DOLLAR AMOUNT ON EACH RETURN BY A SECOND 

FACTOR NHICH HAS THE SAME FOR ALL RETURhS, ThE kEIGHT FACTORS 

d�RE CHOSEN TO REACh TARGETS FOR NUMBER OF HETUHhS BV FILING 

STATUS, AND ONCE THESE FACTORS WERE KNOWN, THE DGLLAR-AMOUNT 

FACTOR WAS CHOSEN TO REACH THE TARGET FOR WTAL ADJ, GROSS INCOME. 

THE FACTOR3 WERE: 

CEIGHT FACTORS: 

SINGLE 1, L3f3 

JOINT 1,atn 

PFS AND 93 J,OOOO 

H�AD CF HOUSEHOLD 1,1421 

DOLLAR-AMOUNT$ 

FACTCR 1.2534 

THESE CHANGES NOT ONLY ACHI�VED THE FIRST Ffk TARGETS, BUT ALSO 

BROUGHT ALL OTHER AGGREGATES INTO A MORE PLAUSIBLE RANGE, SO THAT 

THEKE lVOUL0 BE LESS STRAIN ON THE SECUNO STAGE OF THE 

EXTHAPOLATION PROCESS, 

THIS VERSION OF TH� FIRST-STAGE REPRESEhTS AN IMPROVEMENT OVER THE 

1976 METHOD, IN 1976, A SINGLE WEIGHT FACTCR NAS USED FCR ALL 

FILING STATUSES, AN0 QWLY THE TOTAL NUMBER=GF-RETURNS TARGET WAS 

HIT AT THIS STAGE. 

NEXT, THE TAX MOO�L RECALCULATED ALL TMOSE ITEMS ON THE RETURNS 

THAT CAN BE CALCULATED: THAT IS, MAINLY, TAX, TAX hA9 COMPUTED 

UNDER 1978 LAh A3 OF MAY 1978, 

RECALCULATING TAX INVOLVES A TRAP: 3OHE RETUGNS NHICH bSED THE 

STANOAR0 DEDUCTION IN ThE I975 FILE USE ITEMIZED OEDUCTLONS IN THE 

1978 FILE, FOR ThESE RETURNS, TH� EXTRAPOLATLGN RELIES HEAVILY oh 
.. , 

TREASURY PERSONAL 11UOIVIOUAL INCOME TAX MOOEL, 27 JUN 78 3-u 

THE IMPUTATICN OF ITEMTZEO OEDUCTIONS TC STANCARD-DEDUCTION 

RETURNS, WHICH 13 DOCUMENTED IN ChAPTER 4, 

TO SIMPLIFY THE REST OF THIS TASK# ALL QF TI'� ReSULTS aF THE 

FIRST STAGE CF THt EXTRAPOLATIGN hERE INCORPGRATED IN AN 

INTERHEDIATE FILE. THERE ARE NO DIFFER�NCES @ETkEEN THIS FILE Ah0 

TH� FINAL 1378 FILE EXCEPT IN THE SAMPLE hEIG1.rTJ~ 

3.1.3. THE SECOND STAGE 

THE PURPOSE OF THE SECOND STAGE OF THE EXTRPPCLATIUN WAS ta CHANGE 

THE 3AMPI.E WEIGHTS IN ThE PREQAMPLE IN SUCH A kAY AS TO REACH ALL 

OF THE TARGETS IN TABLE 3.1.1. ThIS I3 CERTAIhLY P088fet.E, 3INCE 

IT AMGUhTS rO SGLVING 11 LINEAR ESUATSGhS Ih 50,000 VARIABLES. ALL 

THAT IS REQUIRE0 IS TO FIND A CRITERIUN BY WfCH TO CHOCSE OlvE OF 

THE PANY SOLUTIGNSm 

OUR CRITERION I3 STATED IN TERMS OF AN CBJECTIVE FUNCTLCN, hHOSE 

ARGUMENTS INCLUDE THE NEW SAMPLE hEIGHTS, SIMPLY STATED, IT IS 

OESIRAeLE TO SELECT THE NEW wEI.GHT3 IN SUCH A kAY AS TO HIT ThE 

TARGETS, 4N0 MINIMIZE THE OeJECTfVE FUNCTl'Oh, 

OUR OeJECTIVE FUNCTIOIU IS BASED ON AN ARBITRARY WEASURE CF THE 

OISTCRTION CAUSeD BY CHANGING THE WEIGMT ON AthY RETURN, TFI3 

DEPENCS ON THE RATIO OF THE NEW NEIGHT TO TbE OLD WEIGHT? IF THE 

RATIO IS CLOSE TO 1.0, THERE IS NOT MUCh OISTCRTION IF THE RATIO 

IS CLOStR TU ZEHO OR EXTREMELY LARGE, THE DIS8OATION IS LARGE, AS 

ThE RATIO APPROACHES ZERO, THE DISTORTICN APPRGACHES INFINITY. IF 

X REPRESENTS THE RATIO GF NEW TO OLD hEIGHT FCA A PARTICULAR 

RETURhr WE WILL U8E PHICX) TO REPRESENT The ASSOCIATED DISTORTIOlu 

(t3Y ObR ARR$TRAHY MEASURE), 

THE CCWPLETE OBJECTIVE FUNCTION IS OBTAINED BY CALCULATING THE 

OISTORTION PHI(X) FGR EACH SAMPLE R�TURN AN0 TAKING THE SUMP 

kEIGHTIhG BY THE ORIGINAL WEIGHTS, 

FOR THE DISTORTLON FUNCTION PHIt WE HAVE CHCSEN THE FOLLCNINGI 

4 -4 

. (3.1,lI PHI(X1 = x + x -2 

THIS CHOICE 1s ARBITRARY AND CAN ONLY RE JUSTIFIED BY THE RESULTS 

AND BY THESE DESIRABLE FEATUREJ: 

(3.1.21 PHI(1) 0 0 
TREASURY PERSONAL IhOIVIDUAL INCOME TAX MGDEL. 27 JUN 78 3-5 

SO THERE IS NO DI3TORTIGN kHEN THE WEIGVT IS NCT CHAhGEO, 

(3.1.31 LIM PHI(X1 = LIM PHI(X1 = tINf 

x->o XI> tINF 

SO NEIGHTS TOO FAR FROM 1 ARE NOT TOLERATED, 

SO, FCR �x4flPLE1 IT IS A3 DISTORTING TO MULTIPLY A WE1Gk.f BY 4 AS 

TO DIVIDE IT BY 4s 

ANY FbNCTION HAVING THESE PROPERTIES MUST 6E CF THE FORP: 

IT WAQ DECIOED 10 CHOOSE 8(4)~1 AN0 ALL OTHER B(I)OOs THE GRAPH 

OF PHI I3 SHOWN IN FIGURE ~3,l.l. 
, 

TREASURY PERSONAL INOIVIDUAL INCOME TAX HODEL, 27 JUN 78 3-6 

I 

80 I * 

70 I * 

76 I 

74 I 

72 1 

70 I 

b8 I * 

b6 I 

b4 1 

bt I 

60 I 

58 I * 

56 I 

54 I 

sa I 

50 I 

48 I 

46 I 

44 I 

42 I * 

40 I 

38 I 

36 I * * 

34 1 

32 I 

30 I * 

28 I 

26 I * 

24 I 

22 I 

20 I * 

18 I 

16 I 

A4 I * 

12 I 

A0 I * 

BI * 

61 * 

41 * 

Z I * * 

0 +o~~~~~~~Ic~~-=IImo~+mmm=mm~oo~=w~~~~mmI 

0 1 2 

VALUES OF X 

FIG. 3.101 GRAPH OF PHI(X) 
TREASURY PERSONAL IhOIVIDUAL INCOPE TAX MODEL, 27 JUN 78 3- 7 

ALL OF THE TARG�T3 HERE ACHIEVED IN STAGE 11 kITh A TOTAL VALLIE 

FOR THE CBJECTIVE FUNCTION OF 6~400t00010 THE LOkEST POSSIBLE, 

ThIS 13 AN AVERAGE OISTOATION OF 0.072 PER POPULATIQN RETURN, 

THIS 13 THE AMOUNT OF DISTORTION CAUSE0 BY MULTIPLYIhG []OR 

DIVIDIIUG) A 3AHPLE kEIGHT 8Y 1,069, 

SOME QF THE WEIGHT CHANGES, HOWEbERt WERE EXTREME, THE GREATEST 

RATlO CF hEW TO OLO WEIGHT kAS 6.53, THE SMALLEST, O,57, TABLE 

3e1.2 3HOrtS THE: OISTRIBUTION OF SAMPLE RETURNS, AND POPlJLATrON 

RETURNS, BY THIS RATIO, 

INCREASING THE EXPONENT (THAT IS, THE PCWER 4) IN OUR awEcTivE 

FUNCTICN WOULD HAVE FORCED THE EXTREME VALVES CLOSER TO 1, WITH, 

OF COURSE, SLIGHTLY MORE 01STORTfrGF( AwGhG TkE LESS EXTREME 

R�TURNS, DECREASING THE �XPONENT kOUI.0 HAVE PLLCWEO THE EXTREME 

VALUES TO eE MORE EXTREME. WHEN THE EXPONEIVT z WAS USEO IN A 

TRIAL RUN, THE LARGEST FACTOR BY WHICH A WEIGFT HAS INCREASED HA9 

480UT t30, 
TREASURY PERSONAL INOIVIOUAL INCOME TAX MOOEL, 27 JUN 78 3-8 

TAELE 3.1ct 

RESULTS OF STAGE 11: 

OISTRIBUTION OF RETURNS BY RATLO OF NEk TC’CLD WEIGHTS 

FOR 1978 

LESS 

e25 - 1 5 - 0 0 0 

.s e7 1 002 e001 

e7 m 08 13 e19 145 

b9 652 901 79s 

THAN m25 0 0 0 

m9 le0 ~33,641 65,661 

le0 m 1m1 1tr276 16,609 

le1 - le2 1,547 at 750 

1.2 - le3 875 lrb20 

1.3 le5 832 656 . 

64,252 

17,026

3.1S7 

2,025 

a95 

3elmSe POST-ADJUSTMENTS. 

AN ANALYSIS OF THE EXTRAPOLATED SAMPLE REVEALED THAT CERTAIN DATA 

ITEMS 010 NOT CCRRESPaNO TO OUR NORMATIVE PRE-CONCEPTfChS OF WHAT 

Oh� WCULD EXPECT THESE DATA ITEMS TO BE IN 1978. SINCE IT rJA3 IVOT 

POSSIBLE TO ACHIEVE THESE LEVELS BY TARGETIfVG THEM, THEY hERE 

AOJUSTEO AFTER-THE-FACT, THE FOLLOWING SUMMRAIZES THESE 

AOJUSTPENTS: 
-- 

I.I.S.1. TAX EXPENSE DEDUCTIONS. 

(AI STATE & LOCAL GAS TAX EXPENSE kAS LOkEREC 8Y 5%. 

(8) GENERAL SALES TAX EXPENSE WAS LOkEREO BY 6%. 

(CI PEwsaNnC PROPERTY TAX EXPENSE HAS LOMREC BY 20%. 

(0) OThER T4X EXPENSE kA8 LOkERfD BY 20%. 

3.1.S.2. MEDlCAL EXPENSE DEDUCTION. 

(AI FOR ALL ITEMIZED RETURNS NITH ADJUSTED CRCSS 

INCOME GREATER THAh ZERO, 

(81 IF ThE RATIO OF MEDICIIUE & ORUCS PLUS PEOICAL 

(L OENTAC TC AGI 13 L�SS THAN IO%, O�CREASE SUTH 

MEDICINE 8 ORUGS Ah0 MEDICAL 8 DENTAL 6Y lo%# 

GTHERNISE INCREASE B~THev 3.5%. 

3.1.5,3, CORRECT IHPUTED ITEMfZEO OEDUCTIOhS, 

(4) FCR STANDARD OEDUCTION RETURNS ONLY, 

(8) FCR RETURNS WITH TCTAL CHARITABLE LESS ThAN $550. 

(Cl INCREASE The IMPUTED CHARIfA6LE COhTRIBUTIOkS 

EXPENSE BY 4.3%. 

(0) DECR�ASE ALL OTHER IMPUTED ITEMLZED OEDUCIIONS 

BY THEIR PHO-RATA SHARE OF THE TOTAL SC AS TO 

MAKE UP THE 43% INCREASE IN ChARITAOLE CGhfRIBUTIONS. 
TREASURY PERSOFtAL IElOIVIDUAL INC.OME TAX MODEL, 27 JON 78 3-10 

APPENOIX A 

A, PATHEMATICS OF STAGE 11 FljR 1978, 

THE PRCBLEM IN STAGE XI IS TO ASSIGN IvEh WEIGFTS TO RETLRkS SO AS 

TU REACH TCCE GIVEIv TARGETS, WHILE VXNIMSZING ThE VALUE OF A GIVE& 

OBJECTIVE FUNCTION, 

LET THE TARGETS BE REPRESENTED BY T(J1 (J~l8...~hlt kHERE N IS TkE 

NUMUEH Of TARGETS. fQA EACH I-TW RETURN8 LET k(I) BE ThE ORIGINAL 

SAWPCE hEIGHT LET S(1,JI BE THE AMOUNT OF ThE J-TH TARGETED ITEN 

ah THE I-TH RETURN AND LET (x(I)*~(I)I e� THE NEW EIGHT. THUS x 

IS THE RATIO OF THE NEW WEIGH1 TO THE OLD WEIGbT, 

OUR PROBLEM 1st THEh TO MINIHIZEi BY CNOICE CF THE X(Il'3, THE 

OBJkCTIVE FUNCTION 

SUBJECT TO THE CONSTRAINTS 

FGR EACH TARGET T(J1 (J=Ito.rtNlr 

ThIS IS ACHIEVE0 BY INTROOUCINC LACRANGE MULTIPLIERS LAPBOACJ) 

(J=l I,,,I Nl AND S�E.KING AN EXTRLPlllM FOR THE LIGAILNGIAN 

THE PARTIAL OERIVATIVES OF P ARE; 
THEASUGY PERSONAL IIoOIVIDUAL INCOME TAX MOOEL, 27 JUN 78 3-1 1 

(FOR EACH J), NOTE THE I&' IS A SUBSTITUTE FICR THE PARTIAL 

DERIVATIVE SIGN, 

SETTIhG THESE EQUAL TC ZERO GIVES A 3ET OF SIFULATANEOUS kONLIN�AA 

EQUATLCNS 0- ONE FOR EACH TARGET AN0 ONE FOR EACH RETURN -- WHICH 

WE CAN SCLVE FOR THE X(I1'S AN0 LAMBOA(J)'S, 

THE FIRST STEP IN THE SOLUTION IS TO USE THE GROUP OF EQUATIONS 

LABELEO (21 TO EXPRESS THE X(I113 IN TERMS 8GF ThE LAYBOA(J1'So 

FOR EACH I: 

0" 1 

(3.A.6) &P/gX(II N(I)*(PHI'CX(I)) > (LAYBDA(J)*SCI,J)) -11-

J 

SETTIlvC THE PARTIAL EQUAL TO ZERO IMPLIES: 

3 

IF WE SET THE PARTIALS IN EQUATIONS C3.A.41 EWAL TQ ZERP AND 

SUBSTITUTE THE ABOVE VALUES FOR ThE X(I1'3r WE GET: 
TREASURY PERSONAL INDIVIDUAL INCOME TAX MODEL. 27 JUN 78 3-12: 

T(J) f 0 (FOR EACH J) 

THIS IS A SET OF N EQUATIONS WHICH hE CAN SCLLE FOR LAM~OA(J) 

(J=ltaa*?NIa THEN, WE CAN DETERMINE THE X(I)'S FROM EQUATIONS 

(3oAoal* 

THIS MUCH OF THE THEORY WOULD APPLY, WHATEVER CUR CHCICE FCR THE 

OISfORTION FUNCTLONt PHI. UNFORTUNATELY THE SYSTEM (30Aa9) IS0 Lh 

GENERAL, NONLINEAR AND CANNOT HE SOLVED EXPLICITLY, FOR OUR 

PARTICIJLAR CHOICE OF PHI, THE SYSTEM CANNGT EVEN BE hRIfTEN 

EXPLICITLY, SINCE (PHI') INVERSE CANNOT eE EXPRESSED IN TERMS OF 

SIMPLE FUNCTIONS. 

STILL0 WE HAVE HRITTEN AN0 APPCIEO A FAIRLY GENERAL ACGCRITBM FOR 

CUMPUTER SOLUTION OF THE SYSTEM (*3.A091* TkE L'SER SPECIFIES THE 

FUNCTIQN PHI, WHEREUPON THE MACHINE CONSTRUCTS TABLES OF VALUES 

FOR PhI, PHI', 8 (PHIII INVERSE. ANY FURTHER REFERENCE TO PHI IS 

INTERPRETEO IN TERMS GF THE TABLES OF VALUESa 

THE ALGORITHP EEiXNS WITH A 8ET Of INITIAL GUESSES PCR THE 

LAMUOA(J)'S. THES� MAY BE INPUT BY THE USER 0- FOR EXAPPLEO IF A 

NEARLY IDENTICAL SYSTEM HAS BEEN SOLVED PRELIICUSLY OTHERhISE, THE 

INITIAL VALUE OF EACH LAMBOA(J1 IS 1aOo THEN ThE LEFT SIDES OF 

ThE EQUATIONS IN G3eA.91 ARE COMPUTED, kHICH REQUIRES Oh� PASS 

THRaUGH THE FILE OF RETURNS AN0 AT THE SAME ffPE0 A JACOBIAN 

MATRIX IS COMPUTED hHICH SHOHS THE EFFECT8 OF SMALL CHAhGES IN THE 

LAMdOA(J)'S ON THE VALUES OF THE LEFT SIDES CF THE EOUITIONS* 

WITH THIS INFORHATCON IT IS POSSIBLE TO SELECT AN IMPWOVED GUESS 

FOR THE LAMBOA(J1'S FOR USE IN THE NEXT PAS$* WE FOUNO THAT FIVE 

TO TEN ITERATIOhS WERE SUFFICIENT TO REACH 28 TARGETS hlTHIN TH� 

LIMIT1aF ACCURACY OF THE; MACHIN�* 

THIS METHOD FOR SOLVING THE SYSTEM (!3mAa9) I8 APP4RENTLY CALLEO 

THE GYUSS-NEWTON HETHOO. THIS PARTICULAR ?APPLICATION PRESENTS NC 

DIFFICULTIES* 

THE PROCESS OF CONVERGENCE IS INTERESTING TIC VtATCHr SINCE THE LEFT 

SIDES OF THE EQUATIONS IN (3,A,9) REPRESENT ThE AMOUNTS BY WICH 

THE TARGETS WILL rx MISSED IF WE STOP WITH TM CURRENT VALUES OF 

THE LAPBOA(J)'S THUS, hHILE THE LAMeDA(J1'S CONVERGE ON THEIR 

CORRECT VALUES, WE CAN hAfCH THE ENTIRE FILE OCNV�RGE Ob ITS 

TARGET'S 

WE HA0 NO CONVERGENCE PROBLEMS QF ANY SORT, EXCEPT ONCE WHEN wE 

ATTEMPTED A TRIAL RUN WITH INCONSISTENT TARGET3a IN GE~ERAL, IF 
CONVERGENCE PRCBL�M$ ARE ENCOUNTERED IN APPLYING fH19 ALCORJTHM, 

IT 19 PROBABLY BETTER TU SELECT MORE REASUNABLE TARGETS ThAN TO 

USE A "ORE PONERFUL SOLClTION PROCEDURE, 
TREASURY PERSOhAL INDIVIDUAL INCOME TAX MOOEL. 27 JUN 78 3-14 

APPENDIX 8 

8. ObPLICATIhG THE TREASURY PROCEDURE FOR 1977. 

IF valr HA'VE BEE^ USING A FILE OF 197s TAX RETLR~SCEWEC FRQM~CR 

SIMILAR TC, THE 1975 tSTATISTICS OF INCOME' FILE, YCL CA~CREATE A 

19713 FILE USING THE TREASURY METWO NITBOUT CALCULATING THE 

LAGRANGE MULTIPLIERS YOURSELF. THE REQUIHEMEhTS ARE: (1) YOUR 

FILE MUST CUNTAIN E1JOUGH INFORMATION FWM Each RETURN TC CALCULATE 

THE 11 TARGETED ITEMS (TABLE 3,101, PAGE LA) hITh NC EXCEPTIONS 

(21 YGU MUST BE a6LE Ta CALCULATE 1978 LAh TAX FCG EACH RETURN 

(197s LAW TAX IS NOT USASLE, EVEN A8 A hALFlhAY IYkASURE, SEE PAGE 

3AI. IF YOU BEGIN WITH A COPY OF ThE GFFIC& CF TAX ANALYSIS 1975 

TAX MQCEL fIL�, YOUR RESULTING 1978 FILE hILL R�FLECT THE 11 

TARGETS EXACTLY. IF YOU EEGIN HIfH THE IhTERhAL GEVEIUUE SERVICE 

1975 TAX MODEL GR ANOTHER SU8SAMPLEr YUU hILL PISS THE TARGETS BY 

THE COV8INED SAMPLING ERRORS Of OUR SUBSAMPLE Ah0 YCbHS. 

TO CREATE YGUR 1978 FILE, REVISE EACH 1975 FXTURN AS FaLLaws: 

1. MULTIPLY THE SAMPLE WEIGHT eyt 

(FOR SINGLE RETURNS) 1e 11: $3 

(FOG JOINT RETURNS) 1.0271 

(MFS AND SS) 1.0000 

CHEAOS Cjf HGU3EHOLD) le1921 

2. MULTIPLI EACH OOLLAR AMOUNT ON THE RETURN 

@Y 1,2534.

3. CALCULATE TAX UNDER 1-978 LAh, (THIS IS OIFFICULT, 

IT CAN BE POSTPGNED UNTIL THE CGNCLUSICh OF ThE 

EXTRAPOLATION, AND ERRORS IN CALCULATI~G TAX WILL NaT 

AFFECT THE EXTRAPOLATION ITSELFe) 

4, IDENTIFY THE 11 NUMBERS WHICH REPRESENT THE 

UNWEIGHTED AMOUNTS OF THE TARGETED ITENS ON THE RETURN. 

S�E TABLE .3ol.1. NOTESI 

(A) ITEMS SUCH A3 ARE EITHER 1 OR 0. 

(8) ITEM 10 CPLhSIOkSl IS THE SUM OF FULL7 TAXABLE 

PENSIONS AN0 THE TAXABLE PORTEON OF PARTIALLY 

TAXABLE PENSIONS. 

5. HULTIPLY EACH OF THE 11 NUMBERS 0ETER)ltIhED ABOVE BY 

THE CORRESPONDING MULTIPLIER (TABLE 3,8,l), ADD ThE 

RESULTS, AN0 CALL THE TOTAL Y. 
TREASURY PERSONAL INDIVIDUAL INCOME TAX MOOEL, 27 J~JN 78 3-15 

TAULE 3.8.1 

MULTIPLIERS USED FOR THE 1978 �XTRAPOLATION 

1 toa29732 10 +.Q22676 x 10 

-6 

+1,970475 11 m41.06 x io 

t 1,4e93az 

t 150923 

-,757532

-.759515 

7 

8 

t834.018 x 10 

to44Pbl x 10 

t4,69762 x 10 

-6 

-6 

-6 

6, FINO X SUCH ThAT 

3 -S 

UX - 4x = Y 

7. MULTIPLY THE SAMPLE kEIGHT BY X, 

80 ThE POST-ADJUSTMENTS ARE ACCOMPLISHED BY EMPLOYING 

THE SOURCE CODING SHOWN BELOW (REFER 70 CHAPTER Z 

FOR THE INT�RPREtATION OF THE VARIABLE hAMES1. 
THEASURY PERSONAL INOIVLCUAL INCGHE TAX MOOEL. 27 JUN 78 3-14 
TREASURY PERSONAL INOIVIDUAL INCOME TAX HODEL. 27 JUIV 78 3-17 

1 

Dh1=0~117~t0(118)t0(119}t0~120) 

848 CCIvTINUE 
TREASURY PERSONAL INDIVIOUAL INCOME TAX MODEL, 27 JUN 78 4-1 

4, IMPUTATION MET~ODOLCGIES, a 

4a1, IpPUTING OEOUCTIONS TO STANDARD DEDUCTIGk RETURNS, 

4,101, RATIONALE FOR IMPUTATION. 

If ONE ENCOUNTERS A TAX PROPOSAL THAT TREATS ITEMIZED DEDUCTIONS 

OIFFERENTLY THAlu THE PRE3ENT LAW, IT L3 POSSIBL6 THAT THE NEW 

TREATWENT MAY RESULT IN saHE INOIVIDUALS ELECTING TO FILE AN 

ITEMIZED RETURN RATHER THAN A STAhDARD OEDUCTI~ON RETURN, THIS 

EFFECT, HOWEVERi CANNOT BE CAPTURED IN AN AFvALYQIS UhLESS THE DATA 

8ASE CCNTAINS DOLLAR AMOUNTS FOR EACH OEDUCTIBLE ITEM \Oh A

OAR0 OEOUCTION RETURN, SINCE THE TAX 

DOES NOT C@NTAIh THESE DATA, IT WULD 

ESTIMATE TO EACH OEOUCTIBLE ITEM OH A 

ALLOWING GNE TO ESTIMATE THE EFFECT OF 

TO AN ITEMIZED RETURN, 

4.1.2. GEN�RAL METHOOOLGGY, 

STANSAMPLEt IN ITS ORIGINAL FOAM 

BE DESIRABLE 10 ASSIGN SOME 

STANDARC RETURN; THEREBY 

SWITCHING FROM A STANDARD 

TWENTY-FIVE ATTRIBUTES (ITEMS 93 ThROUGH 117 Ihr THE 1975 901 

ARCHI'VAL DATA BASE) ARE AVAILABLE FOR RETURNS kHICH ARE 'ITEMTZING 

WIITH QETAIL*f TI.I�SE ATTRIBUTES ARE ORIGINALLY MISSINGi HOWEVER# 

IN ALL OTHER RETURNS AN0 HAVE THEREFORE BEEN IPPIJTED TO STANDARO 

DEOUCTCR RETURF($ hITH 'FORM OF DEOUCTIOh COG� (FDED) EQUAL TO 3 

kND 4, THE IMPUTATIONS ARE �STIMATES BASED MAINLY UPON DATA 

PATTERNS IN ITEMlZING RETURNS, THE INFORMATLCN TRANSFER' FROM 

ITEMIZER RETURNS TO STANDARD DEDUCTOR RETURk3 hA8 ACCOMPLISHED BY 

A MATCPING PROCkOURE, kWICH LINKS EACH RECIPIEhT (STANDARD 

DEDUCTCR) RETURIU HITH A SUITABLE DONOR CITEPlZERl RETURka 

IMPLICITLYi EACB TAX RETURN POSSESSES A NUMRICAL ThfiESH@LD BASED 

ON ITS MARITAL STATUS Ah0 ON ITS ADJUSTED GROSS INcGME. A TAhABLE 

UNIT SHOULD RATIONALLY ELECT STANOAWD DEOUCTCR STATUS IF IT3 TOTAL 

ITEMIZED DEDUCTION8 FALL 9ELOln THLS THRESHQLD; Ah0 - CONVERSELY IT 

SHOULD CHOOSE TO ITEMIZE IF ITS TOTAL DEOUCTIChS FWM AGI EXCEED 

THE ThREShOLO, IN COMPLIANCE HITH THI3 RATIGhALE, THE IWPUTATION 

METHOOCLOGY LIMITS TOTAL DEDUCTIONS PER A�TbRE( TO VALUES EIELOk ThE 

THRESHCLD, 

ANOTHER PROPERTY, WHICH THE IMPUTATIONS HAVE, IS THAT ThEY ARE 
TREASURY PER3GNAL INOIVIDUAL INCOME TAX MOOEL. 27 JUN 78 4=Z 

RANDOBIZED IN ACCORDANCE WITH UNOERLYING NATUFiAL DISTRIBUTIONS Ah0 

WITHIh PRGPER BQUNOS. THUS, TWO RETURhS WITh IO�NTICAL AGI'S WILL 

NOT Ih GEhERAL EXhIBIT IDENTICAL VALU�S FOR ANY OF THE IPPUTED 

ATTRIBUTES, 

FOR THE TAX MODEL ems BUILT UPON 1975 so1 DATA, THESE 

IMPUTATIONS HAVE EEEN PERFOHMED IN ACCORDANCE kITH TH� FCLLOWING 

TMXE MEMORANOA w PETER K. COOK: 

1, THE TURNER SGFT-LINK HETHOOi NOVENEER 18, 1976, 

2, IMPUTATION OF ITEHIZEO OEDUCTIONS TC PfRSCNAL INCOME 

TAX RETURNS GF STANDAI30 OEDUCTOAS Ih THE 50,160 RETURN 

1973 SO1 SAMPLE, REVISED, DECEMBER 27, 1976. 

1: TRANSFORMATICN FUNCTIONS FOR IMPUTLTLCNS, JANUARY 

13, 1977, 
TREASLtRY PERSOhAL IkOIVIOLIAL INCOME TA% bWDEL. 27 JUN 78 4q2 . 

4.2. kIFE'S SHARE OF WAGE3 g SALARIES IMPUTATION, 

4.2.1. RATIONALE FOR IMPUTATION, 

CALCULATICN OF WITHHOLDING OR SOCIAL SECURITY TAX FCR A TWOEARNER 

COUPLE REQUIRES K~OWLEDGEOF THEIR SEPARATE hAGES. IN AOOIfIUN~ 

MANY RECENT INCOMk-TAX PROPOSALS WOULO PROVIOE SPECIAL TREATMENT 

FOR A $�CONO-EARN�R'S kAG�S. THEREFORE AN IPPUTATLON HPS BEEN 

MADE Ih THE TAX MOQEL TO INOICATE WHAT SHARE CF THE COMBIN�D WAGES 

Oh A JCINT RETURN IS ATTRIBUTABLE TO EACH SPOUSE, 

THE IMPUTATION APPEARS GN �ACH RETURN A$ SHARESf OR D(i71), Atdo 

REPHESENTS THE SHARE OF TOTAL WAGE AN0 SALARY INCOME ATTRIBUTABLE 

TG THE kIFE, ThE VALUE OF SHARES RANGES FRCM OeO TO 1.0. THE 

USER kHO PREFERS TO USE >SECONOm�ARNER'S SHARE,) THUS AYOfOIhG A 

DISTINCTION BASEO ON SEX, SHOULU bSk' AMINl(S~ARES,t.~SH~RE3)~ 

kHICH RAhGES FROM 0,O TG 0.5, 

The IMPUTATION REFERS ChLY TO WAGE AND SALARY INCOME. h.OkEVERt 

SOME USERS HAY WISH TO USE IT AS A PROXY FOR TH� OISTRIBUTIOh OF 

NUNIWAGE INCCME OR OTHER ITEMS, Ah0 FOR THEIR CONVENIENCE TH� 

IMPUTATION HAS BEEN CALCULATED FCR ALL JOINT RETURNS, I~CLUDING 

THOSE kITHOUT kAGE INCOME, FOR NCNmJOLhT RETkRNS, 1NCLI;OINC 

SURVIVING-SPOUSE AN0 MARRIED-SEPARlT� RETURkS, SHARE3 EQUALS 010. 

THE IPPUTATION IS EASED ON INFORMATION FROM A SAFPLE OF 1974 TAX 

R�TURF;S MITH TH�IR ACCOMPANYING 'k-2 FORMS, khltti nA3 PREPARED BY 

THE I.R.S. FOR THEIR SPECIAL STUDY. A COPY CF THE SAMPLE TAPE IS 

NOW IN THE CUSTQOY OF o.c.9. THIS TAPE HAS USED Ta PRUDUCE TABLE 

4.2.1r BELOW. THE ORIGINAL TAaULATION IS ATTPCHEO TO A MEMO FRUH 

STROMQUIST TO GALPER AN0 NILKINSi DATED AUGOST 30, 1977, AND KEPT 

IF( THE REVENUE ESTIMATIkG FILES, 

TO PRCOUCE TABL� 4.2.1, THE 1974 JOINT RETUHNS WERE DIVIOED INTO 

30 GRCUPS BASED ON AOJUSTED GROSS INCCME ANG NltMBER CF DEPENDENT 

EXEMPTIONS, EACH ROW GF TABLE 4.2,1 OESCHIBES ONE GROUP, WIT HI^ 

�ACH GROUP, THE RETURM WERE OIVIOEO INTO CELLS ACCCROING TO THE 

WIFE'S SHARE OF TOTAL H-t WAGES. (TH� OISCREPANCIES e�Th�EN W-Z 

YAGk3 Ah0 TOTAL hAGES REPORTED ON THE R�TURNS kA8 SMALL.) THERE 
THEASIJRY PERSONAL INDIVIDUAL INCOME TAX MOOEL, 27 JUN 78 4-4 

IS LINE CELL FOR A SHARE OF EXACTLY O,O, AND ChE FOR EXACTLY 1.0. 

EACH ROW IN TABLE 4.2.1 IS CUMULATIVE. 

TO HAKE THE IMPUTATION IN ThE 1975 TAX MODEL, EACH 1975 RETURN WAS 

ASSIGhED TO CNE OF TME SAME 30 GROUPS, AND kA3 ThEN ASSIGNED TO A 

CELL IN THAT GROUP AT RANOOM (NIfh THE APPRCPFIATE PROBA~ILITIES), 

THI3 #AS ENOUGH TO SPECIFY SHARES hITHIN A RAhGE OF 0,l. AN EXACT 

VALUE AS THEN CHGStN WITHIh THE FANG� AT RAhDCM (UNIFORM

OISTRIBUTION), OF COURSE, IN THE EXTREME CELLS THERE WAS NO 

RANGE, AkO SHARES &AS LEFT AT EXACTLY 0.0 Off 1.0, 

THE IMPUTATION wAS MADE IN THE 197s TAX FcOD�L, Ah0 CARRIED OV�R 

WITIIC~JT CHANGE TO ThE 1978 MODEL. THF 1978 MCDEL, HOWEVER, SHOULO 

SHOW A SLiGhTLY HIGHER PERCENTAGE CF ThG=EARhER COUPLES, SXNCE 

THEHE ARE MQRE CHILOLESS COUPLES IN 1978 AND THE 1978 MCDEL 

R�FLECTS ThI3 WITH HIGH�R SAMPLE nEIGHTS Oh ThE SAME SAMPLE 

RETURlrS. 

THE IMPUTATIOh COULD BE IMPROVE0 8Y A 6ETTER SELECTION CF THE 30 

GROUPS. IT IS OESIRABLE TO KEEP THE NUMBER OF GROUPS R�LAtIVELY 

LCWr SC THAT THk T48ULATION CAN EE REVIEWED EXPLICITLY, AND TO 

ASSUffE A REASONABLE SAMPLE WITHIN EACH GROUP, STILL, A BETTER 

CHOICE COULD BE MAOE, FOR �XAflPLEr OTHER TABLLATfONS FRUfl TH� 

1974 STUOY SHOh THAT RETURNS WITH AGED EXEMPTBCNS ARE LESS LIKELY 

TO KCPRESENT TkO-EARNER*CGUPLES TVAN SIMILAR RETURNS WITkOUT AGE 

EXEMPTIONS, BUT THIS IhFORMATLON hAS OLSAPPEkFED FROM TABLE 4.2.1 

AND FRCM THE TAX MOOEL, IT I3 PRO8AeI.Y POSSIBL� C8INCE 8OTH FILES 

CLiNTAItv HARO-MATChED SOCIAL-SECURITY OATA) PC DEFINE THE GROUPS 

USING AGE CF TAXPAYERS (cui NOT AGE OF CHILGREW, 
UP TG 0 46.2 49.0 51.9 52.8 53.9 59.2 62.13 b3y! 63.5 64.0 64*3 

0- 5 56.7 63.0 67.2 71.1 76-5 79.5 81.0 65.6 85.7 e6.7 87.0 

50 10 69.3 69.8 76.7 82.2 8U.4 87.1 8816 90*2 91.7 92.U 93.5 

10- 15 55.0 67.5 75.8 82.8 89.4 93.7 95.6 96,s 97.0 97.2 97.5 

15- 20 42.0 54.6 66.1 76,(3 86.7 95.0 94.9 97.7 97.9 97.9 98.1 . 

20- 30 39.5 51.3 62.2 72.1 86.13 9!e9 96.4 97.2 97.4 97.4 97.5 

30- SO 51.3 60.7 68.6 75.2 85.~3 91.5 94.1 94.7 94.9 95.23 95.7 

50-100 70.5 80.7 86.4 90.1 91.9 93.2 94.0 94..:! 94.6 94.7 94.8 

lO'Jmi200 73w3 115.5 90.5 92.2 93.7 94.5 94.e 95.0 95.2 95.83 95.5 

ZOO--- 77.3 88.9 92.5 94.5 95*5 96.1 96.7 96.9 97.2 97.4 97rS 
TREASURY PERSONAL INDIVIDUAL INCBME TAX MODEL. 27 JUN 78 
. 

TREASURY PERSONAL IF(0IVIDUAL INCOHE TAX MODEL, 27 JUN 78 4Q7 

4.3, ChILD-CARE CREDIT IMPUTATION, 

4,3,1, RATIONALE FCR IVPUTATION. 

THIS IMPUTATION WAS MADE SO THAT.TFE CALCULATZCNS OF TAXES UNOER 

CURREhT LAW hILL REFLECT THE MAJOR CHANGE3 Ik THE CHILOCARE 

PROVISIONS INTRCDUCED BEThEEN 1975 AND 1978, IN 1975 ThERE WAS A 

OEOUCTION FOR ChILDICARE, BUT IT CCULO ONLY BE CLAIMED BY 

TAXPAYERS WHO ITEMIZED THEIR DEDUCTIQhS, IT &AS ALSC SU6JECT TO A 

CEILIhG AMOUNT AND A SEVEHE INCOM� LIMITATLOh, ThE TOTAL AMOUNT 

DEDUCTED kAS ABGUT $1.3 BILLIUN, BY CGNTRAST, Ih 1978r A CREDIT 

EuUAL To 20% GF DEPENClEkT-CARE EXPEhSE WILL E� ALLONE0 hITHOUT 

REGARD TO INcaMf; OR FORM OF oEoucTIoNs. SINCE THE COVERAGE OF THE 

1975 DEDUCTION OAT4 WAS SO NAHRQhi THOSE DATA hERE OISCAROEO AND 

AN INOEPENOENT IHPUTATIGN WAS EMPLCYED FOR 1978, 

4.3.2, GENERAL METHODQLOGV, 

THE Twa MOST IMPORTANT CRITERIA FOR CLAIMING THE CHILD-CARE 

CREOITi ARE TO BE GAINFULLY EMPLOYED AN0 TO HbVE ONE OR WORE 

DEPENDENTS LIVING AT HCHE FOR h#OM IT IS NECESSARY TO INCUR COSTS 

IN OROER TO kORKo 

THE CREDIT IS AVAILABLE TO TH03� FILING SINGLE RETURhS, JOINT 

RETURhS WITH DEPENDENTS LIVING AT HOME AN0 H�hO OF HOUSEHOLD 

RETURNS WITH DEPENOENTS LIVING AT HOHE, IN 'IF� CASE OF A JOINT 

RETURkr OhLY THOSE RETURNS WITH A LvQRKLNG SPC3USE ARE SNCLUOEO IN 

THE ELIGIBLE POPULATION (WHERE A WORKING SPGUSE IS OEFfhED ON THE 

BASLS CF THE W-2 HETURN), APPLYING THESE RULES LITERALLY YEILDS 

FAR TGC MANY OUALIFING HETURNS, THEREFOREt THE IMPUTATDCN 

HETHOOOLCGY ASSUMES THAT 09% OF ALL OF THE RETURNS THAT kOULO 

NORMALLY QUALIFY# OC NOT USE THE CREDIT(I.E, 11% OF THE RETURNS 

ACTUALLY QUALIFY)* THIS METHOOOLOCY PRODUCES ABCUT 13 MILLIOh 

RETURNS USING THE CHILD-CARE CREDIT AND IS COkSISTENT WITH OUR 

IN=HOUSE REV�NUE ESTIMATES, 

TH� IMPUTATION METHODOLCGY AS8UMES THAT THE TAXPAYER'S EMPLOYMENT 

RELATED EXPENSES ARE 10% OF EARNED INCOME (kHERE EARNED INCOME IS 

DEFINEG AS vlAGE8 AND SALARIES PLUS 30% CF PCSITIVE SELF-EMPLOYMENT 

FARM AND NON-FARM INCGHE, 

HAVING OBTAINED AN ESTIRATE OF THE TAXPAYER'S EttPLOYMENT RELATED 
TREASURY PERSONAL INOIVIOUAL INCOME TAX MOREL, 27 JUN 78 4-43 

EXPENSES, THE CREDIT PER RETURN IS EQUAL ia 20% OF THESE EXPENSES. 

THE CHILD-CARE CREDIT IS LIMIT�D T.0 92,000 FOR RETURNS kITH ONE 

QUALIFYING DEPENOENT AND TO $4~000FOR THOSE FOR TWO OR MORE 

OkPENDENTS AN0 IS NONREFUNDABLEr 

~ASEDm PRELIMINARY 1976 OATA FROM THE IHS, Peoui 2.7% OF RETURNS 

CLAlMEC THE CREOIT, THE TAX EXPENDITURC ESTIPATE FOR 1976 kAS 

9458 MILLION (THI8 hA3 0BTAINED FROM FLOYO REEVES Ah0 IS QUITE A 

BIT LCkER ThAN THE PUBLISHED AMOUNT! REEVES ThINKS IT TOO HIGH). 

BASE0 ON THE EXP�CT�D 86-6 MILLIOIU RETURNS POR 1978, AND AN ANNUAL 

GROhTH RATE OF 10%~IT fS EXP�CTED THAT 3 T!O,?.S MILLlQh RETURNS 

kILL USE THE CREDIT IN 1978, A WUGH E8TIHATE kOULD YIELD A COST 

GF ABCIJT ssso cum, 

NONE , 
TREASURY PERSO~~ALINOIVIDUAL INCOME TAX WDEL. 27 JUN 78 u-9 

4.9, STATE-LOCAL BCND INTEREST 

4.4.1, RATIONALE FOR IMPUTATION, 

ONE CF THE NQN-TAxA~LE SOURCES OF INCOME THAT VARIOUS TAX 

PRQPC$AL$ HAVE GECENTLY CONSIOEREO IS THE TAXPTICN OF TAX-EXEMPT 

STATE AND LOCAL eON0 INTEREST, SIhCE THIS SOLRCE OF INCCHE IS 

NIJN~TAXA~LE, IT DOES NOT APPEAR AS A OATA ITEP ON THE TAX MQOEL 

SAMPLE AND THEREFORE, MUST BE IMPUTED, 

TtrE 1978 ESTIMATE FOR THE TQTAL AWCUNT GF WhC% GUTSTANQING I3 

AUOUT S254.3 BILLION, IhOIVIOUALS IN ThE HblrSEHOLO SECTGff #ILL 

HOLD AeGUT 973 BILLION CF THE TOTAL, THE AVEFiAGE INTEREST RATE Oh 

SUCH OBLIGATIONS IN 1978 I3 ESTIMATED TG BE AEOUT 5.5 PERCENT Ah0 

INO/VfOUALS hILL rTHEREFORE, RECEIVE TAX-EXEPPT STATE AluD LOCAL 

BONO INTEREST OF 54,O 6ILLION OOLLARS, 

THE: MCST RECENT OATA ON THE OISTRIBUTION OF STATE AND LCCAL 

INTEREST I3 ThE 1962 PROJ�CTOR AN0 h�13S STUD? FCR THE FEDERAL 

RESERVE, SINCE THE 1962 FIGURES ARE THE MOST GECENTl IT kAS 

DECIDE0 TO BASE THIS IMPUTATION ON THESE DATA Ah0 KEEP THE 

RELATIVE OISTRIBUTI~NOF INTEREST INCCME UNCHANGED, 

THE FIRST STEP IN THE IMPUTATION PWCEOURE IS TO DETERMLNE TH� 

ABSOLUTE INCCME CLASSES IN 1978 NHIcH kCULO CCNTAIN THE SAP� 

RtLATIVE PROPORTION OF UNITS AS R�PR�SENTED BY THE 1962 INCOPE 

HREAKPCINTS, THIS hAS DONE BY INFLATING THE 1962 INCOME CLASSES 

TO IS78 LEVELS, 3MQOTHING THE RESlrLTS YIELDS THE DISTRIBUTIONS 

PHESElvTEO IN TABLE 4,4,1, 
TREASbRY PERSONAL IhDIVIOUAL INCOP� TAX MODEL. 27 JUN 76 4-10 

TABLE 4.4.1:ESTIMATED DISTRIWTION CF INOIVIOUAL3 

3TATE-LOCAL BONO VALUE ANC IhTEREST 

RY 1978 IhCOME CLASS 

75,000 lOOrO.00 907% 71081 93 88 

lOOi000 0 175,000 36.4% 261572 1,456 

TOTAL 100.0% S7#3,000 3u,ooo 

OFFICE OF THE SECRETARY OF THE TREASURY JANUARY 16,1978 

OFFICE OF TAX ANALYSIS 

THE NEXT STEP IN THE IMPUTATION INVOLVE0 DISTRIBUTING TclE TOTAL 

AMOUNT Of INTEREST IN EACH INCOME CLASS AHCIUG THE UNITS 1Fc THAT 

CLASS, THI9 WAS DONE 8V COMPUTING THE MEAN INTEREST AMOUNT FOR 

EACH I~CGME CLAWTHE TOTAL INTEREST i~THE CLA~~ OIVIOEO e7 THE 

ESTIMATED NUMBER OF RECIPIENT UNIT3 IN THE CLASS) Ah0 COMPUTING A 

STANOARD DEVIATION ASSUMED TO EQUAL 1/2 OF THE MEAN INTEREST IN 

EACH 1hCOME CLASS, ThE PROPORTION OF RETUREtS hITH AND kIThClUT 

TAX-�XEMPT INTEREST, AND THE MEAN AND STANOARO DEVIATICIU GF 

RETURhS WITH TAX-�XEHPT INTEREST ARE PRESENTEO LN TABLE 4,4,2. 

THE PERCENTAGE LiF RETURNS WITH INTERCST INCCME hAS U8EO TO 

RANVOMLY SELECT -- FROM A UNIFORM DISTRI8UTICh -0 INDIVIDUAL 

RETURNS THAT wWL0 AECEIVE AN IHPUTEO TAX-EXEPff INTEREST AMOUNT, 

ONCE A RETURN kA3 SELECTED, THE RETURN kAS ASSIGNED A TAX-EXEMPT 

INTtREST hITH A MEAN AND STANOAAD OEVIATION F'CR klS INCCME CLASS, 

THE AMCUNT IMPUTED WAS GENERATED FROM A LOGhCRWAL DISTRIBUTIGN, 
, 

TABLE 4e4eZ:OERIVATION OF NUMBER OF RETURhS WITh 

STATE-LOCAL 8ONO IhTEREST AkO MEAN APOUNT 

TO BE IMPUTED TO SELECTEO GETURNS, 1978 

75=100 e3.73 6.27 lOOo00 794 21.44 388 18,097 9,048 

OFFICE CF THE SECRETARY OF THE TREASURY JANUARY 16, 1978 

OFFICE OF TAX ANALYSIS 

404.3, OTHER DOCU~ENTATION, 

NONE, 
TREASURY PERSOIUAL INDIVIDUAL INCOME TAX MOOEL. 27 JUN 78 4- tz 

U 

4.5. IMPUTATION FOR 1978 SOCIAL SECURITY PAYRCLL TAX 

4,Sml. RATIONALE FOR IMPUTATICN 

RECENTLY, IT HAS BEEN OESIRABLE TO ANALYZE PWCPOS�O TAX 

L�GIgLATIGN IN TERMS OF TOTAL TAX LIAl3ILITY WFERE TOTAL TAX 

LIABILITY IS OEFItuED AS ThE FEDERAL INOIVIDUAL INCOME TAX 

LIAUILITY PLUS THk SOCIAL SECURITY TAX LIABILITY. SINCE SOCIAL 

SECURITY TAXES ARE NOT INCLUDED IF( TYE INOIVICIJAL INCOME TAX 

RETURN SAMPLE, SOCIAL SECURITY TAXES MUST BE IMPUTED TO THE 

SAMPLE. 

4.5.2, GENERAL METHOOOLOGY, 

IN iwe, ~ACHEMPLOYEE AND EMPLOYER WILL PAY CASOHI, SOCIAL 

S�CURITY PAYROLL TAX, AT A RATE OF r0605 ON ThE 1st S17r700 OF 

TAXAaLE EARNfNGSmtIN 1978 THE SELF-EMPLOVMEhT TAX RATE kILL BE 

.0810 AND TH� TAX BASE kILL AL30 BE S17,'TOO.I SCCIAL SECURITY TAX 

IS PAIC ON TAXABLE EARNINGS -- EVEN IF THfRE IS FrO IIUCOPE TAX 

LIAdILITY, SINCE TkE TAX IS LEVIEO ON A PfR-EARhER BASIS, A LARGE 

PROPORTION OF JOINT RETURNS WILL HAVE TkO SGCIAL SECURITY TAX 

AMOUNTS, 

THE FIRST STEP IN THE IMPUTATION METHODGLOGY REQUIRES THAT THE 

IMPUTATION OF ThE WAGE AND SALARY SHARE OF ThE LESSER EARNER 6E 

COMPLIETED, ONCE THIS IS OUNE, THE SHARE gF TIE LESSER EARNER IS 

MULTIPLIED TIMES TOTAL hAGE8 AN0 SALARIES TC CBTAIN THE LESSER 

EARNERS' HAGES (AND BY SUBfRACTIOh THE HAGES CF THE LARGER 

EARNER), ASSUMING THAT ALL WAGES AN0 SALARIES REPRESEhT TAXABLE 

EACSNIIUGS, SOCIAL SECURITY TAXES FOR 1978 ARE CALCULATED AT A RATE 

OF 0.0605 SUBJECT TO THE EARNINGS LIMITATIOIU'CF S17,700 FOR EACH 

INOIVIOUAL (MARRIED COUPLES FILING JOINTLY CAA HAVE A MAXIMUM OF 

THO CALCULATIONSt 'nHILE ALL OTHER RETURNS HAVE ONLY GlvE 

CALCULATION). FINALLY, ANY SELF-EPPLOYMENT TAX REPORTEO ON THE 

RETURhr AFTER EXTRAPOLATION TO 1978 INCCME LEPELS, 13 ACOEO TO ThE 

CALCULATED SOCIAL SECURITY TAXI IF ThERE ARE THG EARNERS, THE 

SELF-EPPLOYMENT TAX IS APURTIONED BETWEEN THtE LARGER ANU LESSER 

EARNER IN THE SAME PROPCRTION AS THE WAGE AND SALARY SHARE OF THE 

LESSER EARNER. 

TABLE 4.5.1 BELGW PRESENTS THE MAXIMUM TAXA8LE EARNIkGS AND TH� 

TAX RATES FOR THE FICA TAX AND THE SECA TAX FROM 1976 PRESENT LAk 
TREASURY PERSONAL INDIVIDUAL INCOME TAX HOOEL, 27 JUN 78 4-L3 

THRUUGb 1981 PRCjPOSED LAN, 

TABEL 4.5.1: FICA TAX AkO $E TAX FROM 1976 

P.L. ThRU 1981 PROPCSED LAW 

PL f PRESENT LAM 

PDM = AOMINISTRATION 

kAW t WAYS B MEANS 

SFC o SENATE FINAhCE 

NONE . 
I 

TR�ASURV PERSOhAL INDIVIDUAL fNCOHE TAX MODEL, 27 JbN 78 5-1 

5, A GEh�RAL DkSCRIPTICN OF THE TAX MGDEL PRCGRAM, 

5eie INTRODUCTlONe 

THE CCMPUTER PROGRAM COMPONENT OF THE TREASCRY'S INCCME TAX 

SIMULATION MOOEL CONSISTS OF APPRGXIMATELY brOOO FORTRAN V 

STATEMENTS AN0 270 CONTROL STREAM INSTRUCTLChS, THE FCRTRAN 

PROGRAM CONTAINS sa SUBPROGAAMS WHICH ARE GRCGPED fa FGAP 3 PARTS 

OR PHASES. EACH PHASE IS EXECUTE0 SEPERATELY AFTER OVERLAYING THE 

PREVICUS PHASE, 

SINCE JUNE 1968, THE TREASURY TAX MOOEL HA8 BEEN IMPLEMENTED ON A 

UNIVAC 1108 CLiMPUTER, ON THIS SYSTEM, THE PRCGRAW'S EXECUTION 

TIME VARIES WITH THE SLZE OF THE TAX SAMPLE AhC kITH THE 

CUMPLEXITY OF THE TAX PROPOSAL UNOER ANALYSIS, A SIMULATIGN ON A 

TAX SAPPLC; OF 100,030 RETURNS REQUIRES APPRGXIPATELY 12 PINUTES OF 

CPU TIP� WHILE THE SMALLER TAX SAMPLE CF 50,000 REQUIRES 

APPROXIMATELY 4 MINUTES OF CPU TIME, 

IN EACH OF THE SECTIONS THAT FOLLCk, A GENERAL DESCRIPTION CF THE 

MAJOR ASPECTS AND COHPOFtENTS OF ThE TREASURY'S TAX MODEL IS 

PRESENTED, ALL OF THE COMPONENTS OF THE TAX MIDEL AR� DQCUMENTED 

IN THE PROGRAM SOURCE LISTING BUT SOME COMRGkUENlS REQUIRE 

AODITI'GNAL OOCUMEhTATXOh WHICH COULO NCT BE IhCLUOED IN THE 

PROGRAM SOURCE LISTING. THIS ADDITIONAL DOCUPENTATICN IS 

PRESENTED IN THE APPENDICES TU THIS CkAPTER. 

Set, O�SIGN PHZLGSOPHY OF THE TAX MODEL, 

DURING ANY YEAR IN WHICk TAX REFORMS HAY BE PROPOSED, Ah EXISTING 

TAX LAk IS OPERATIVE AND MAY BE DENOTED AS THE PRESEhT TAX LAW, 

THE PRESEhT TAX LAW IS OEFINED BY VARlOUS TAX PARAMETERS WHICH 

COLLECTIVELY ARk CALLED THE STANOARO PLAN X OR SIMPLY PLAN X, 

SfflILARLY, THE SET OF TAX PARAMETER3 kHICH DEFINE THE PRGPGQED TAX 

LAN MAY BE REFFERED TO'AS PLAN Ye IF GNE WERE TO COMPARE EACH TAX 

PARAMETER IN PLAN X (PRESENT LAW1 kITh EACH TAX PARAP�TER INPLAN 

Y (PROPOSED LAHI, HE WOULD NOHMALLY FINO THAT IN MOST CASES, THE 

NUMdER CF OIFFEHENCES BETkEEN PLAN X AN0 PLAN Y ARE SMALL IN 

RELATION TO THE TOTAL NUMBER OF TAX PARAMETERS IN PLAN x, HENCE, 

THE DESIGN OF THE TAX PCOEL PROGRAM INCCRPG8AfES THIS FEATURE BY 

INITIALLY ASSUMING THAT NO DIFFERENCES EXIST BETWEEN PLAN X 

(PRESENT LAW) AhO PLAN Y (PROPOSED LAW), I.�* PLAN X = PLAN Ye 

THIS DESIGN SIMPLIFIES DATA PREPARATION FOR TbE USER SINCE HE HAS 

ONLY TO SPECIFY HOW PLAN Y (PROPOSED LAN1 CIFFERS FROM PLAN X 
TREASURY PERSONAL INDIVIOUAL INCOME TAX MOOEL, 27 JUN 78 So2 

I 

(PRESENT LAW) IN CROER TO COMPLETELY DEFINE ThE PROPCSEO TAX LAW. 

ANOTHER DESIGN FEATURE OF THE TAX PGDEL PRGGRCIP IS ITS CAPAEILITY 

OF COMPARING TkU ALTERNATIVE TAX PROPCSALS NITk PLAN X. MRMALLY, 

A USER hILL WANT TO COMPARE PLAN Y HITF PLAh X AN0 ANALYZE THE 

RtSULTS, Ih SCME CASES, HOWEVER, THE OSEH PAY NANT TG CCMPARE ONE 

TAX PROPOSALI PLAN Yt AhD A SECONG TAX PRCiPCSbL, PLAN 2, hITh PLAk 

IN THE 8AME SIMULATION TO D�TERMIhUE IrhICH FkCPCSAL IbdUCIVIOUAL 

TAXPAYERS MOULD SELECT, 

FINALLY, IT kAS DESiRABLE TO HAVE A TAX MOOEL PRCGRAM THAT COULD 

PHOOUCE SUMMARY RESULTS, DETAILED RESULTS, CR BOTh hHfLE 

MINIMIZING EXECUTION TIME, CONSEQUENTLY, ALL 'CF THE STATISTICAL 

TA6LEQ--EXCEPT TABLE 1A AN0 Sw-ARE OPTLCNAL PhG MUST BE 

SPECIFICALLY REQUESTED, 

PHASE IOF THE SINULATIGN IS BASICALLY AN INITIALLZATLON AN0 

PREPARATION STAGE, It BEGINS BY IkPUTTING CPERATIONAL GATA ON THE 

DESIRED OUTPUT TABLES, TITLES, ETC, NEXT, IT EQUATES ALL TAX 

PARAMETERS IN PLAN 2 TO THOSE OF PLAN X IF PLAN 2 kA3 

REQUESTED,(PCAN X AN0 PLAN Y ARE ALREADY EQUATED TO EACH OTHER 

UNLESS SPECIFIED OTHERWISE), THE REMAIkNING CATA CARDS ARE 

INPUTTEO AN0 THE OATA USED TO MOOIFY THE TAX PCIRAMETERS IN ONE OR 

MORE GF THE TAX PLANS SUCH THAT PLAN X DOES NCT EQUAL PLAN Y WHICH 

DUES kCT EQUAL PLAN 2. ThE REAHINNING EXECUTICN OF PHA4E I PRINT.$ 

THE TAX PARAMETERS UNOER THE ALTERNATIVE PLANS AND PREPARES THE 

STUUS FOR TABLE 6 OUTPUT (IF TABLE 6 kAS REQUESTEUI, 

TABLE 5,13,1 PRESENTS THE SUBPROGRAMS AND COkTRCL STREAM ELEMENTS 

GROUPED IN PHASE 1, SOME OF THESE ARE NOT SPECIFICALLY INCLUOED 

IN TH� CURRENT PRUGRAM AN0 AR� MARKfD kITH AN ASTERIK (*I TO 

INDICATE THAT THEY ARE INACTIVE, 

X 
, 

TREASCIRY PERSONAL INDIVIDUAL INCOME TAX HGDEL, -27 JUh 78 5.4: 

TABLE S,?,l: SUBPROGRAMS AND CbhTFtCL 

STREAM ELEHEEITS IN PHASE I 

CUMPILE1 CONTRCL STREAM fNSTRUCTLOh3 FOR CONPILING 

PHASE I, 

CSAVEl PROCEDURE FILE NHICH OEFIEIES TbE STORAGE AREA 

FOR PHASE I, 

COEITRL EXECUTIVE PROGRAM FCR ALL t3 PHA3ESq 

MAI1U1 EXECUTI\rE PROGRAM FOR PHASE I, 

INPUT1 INPUTS PART 1 DATA CARDS, 

INPUT2 INPUTS TITLE CARDS, TAX PARAMETERS, TAX 

RATES AN0 CONSTRUCTS THE TAX SCHEDULES 

DELDUP DELETES DUPLICATE 

ONE SCH�DULE* 

*BLKDATA/71 INITIALIZES 

* PO I971 TAX 

*BLKDATA/72 INITIALIZES 

TO 1972 TAX 

*8LUO A TAi7.3 INITIALIZES 

TO 1973 TAX 

BLKDAfA/’lS INITIALIZES 

TU 1975 TAX 

BLKOATA/76 INITIALIZES 

TO 1976 TAX 

BLKDATA/77 INITIALIZE3 

TO 1977 TAX 

BLKOATA/78 INITIALIZES 

TO 1978 TAX 

PLAh 

LAIU, 

PLAN 

LAh, 

PLAh 

LAW, 

PLAN 

LAW, 

PLAN 

LAW, 

PLAN 

LAk, 

PLAN 

LAW, 

LSWCUT PRINTS THE VALUE 

SCHED GENERATES NEk TAX 

TAX SCH�DULES, 

MARGINAL FiATES IN ANY 

X Ah0 PLAN Y 

X &NO PLAN Y 

X AN0 PLAN Y 

X AN0 PLAN Y 

X AN0 PLAh Y 

X AND PLAk V 

X AN0 PLAN Y 

OF THE LOGIC SIUITCWES 

SCHEDULES FROM EXISTING 

HRATES HANDLES THE INPUT OF TAX RATE DATA 

SRATES GENERATES A RATE SCHEDULE FCR SINGLE RETURNS 

FROM A RATE SCHEDULE FOR 30IhT RETURN3 

TAXTAB PRINTS TAX RATE SCHEDULES, 

PHGUT PRINTS ALL TAX PARAM�TERS IN A PLAN EXCEPT 

THE TAX RATE SCHEDULES, 

SWEEP GENERATES THE STUBS FOR TA8LE 6, 
TREASU~YPERSONAL INOIVIDUAL INCGME TAX MOOEL, 27 JUN 78 5-4 

THE PRIMARY FUNCTION OF PHASE I1 19 TO PROCESS TPE DATA FRGM THE 

SAMPLE GF INOIV~DUALINCOME TAX RETURNS UhRER EACH TAX PLAN ThAT 

kAS SPECIFIED Ih PHAS� I. UPON ENTRY INTO PhA3E I1 THE PROGRAM 

CALCULATES THE AMOUNT OF STORAGE SPACE hEEO�D TO PRCDUCE EACH OF 

ThE-TABLES REQUESTED BY ThE USER, IF ThE STORAGE ALLOCATION IS 

IhSUFFICIENTr THEN ADDITIONAL CORE IS DYNAMICALLY ALLQCATED, 

FOLLOkIFIG THE AdQVEr EACH DATA RECORD IS INPUTTED ANG UNPACKED. 

USING THE INCGM� TAX DATA IN EACH R�COROv TAX LIABILITY IS 

CALCULATED IN ACCORDANCE WITH THE TAX PLANS FkCM PHASE IAN0 THE 

REQUESTED STATISTICAL TABLES UPOATEO. AFTER ALL RETURNS HAVE BEEh 

PROCESSED, OPERATIONAL STATIQTICS ARE PRINTED ANC THE STATISTICAL 

TABLES ARE OUTPUTTED TO A TEMPORARY DATA FILE, 

IN TABLE 5,U,l, EACH SUBPROGRAM AND CONTROL STREAM ELEMENT GROUPEC 

UNOER PHASE 11 IS PRESENTED, 
-- 

TREASURY PERSONAL IkDIVIDUAL INCOME TAX MCOEL, 27 JUN 78 5-5 

TABLE 5,4,1: SUBPROGRAWS AND CChTROL 

COHPXLEZ 

CSAVEZ 

MAIN2 

MCGRE 

EYOEF 

TXCALC 

DEDUCT 

*EXTRA 

TAX 

ROUtVD 

ELDCR 

fA6LE3 

SAMPLE 

UNPKER 

INDEX 

*INDEXA 

*SURCHG 

DEBUG 

FUSIZE 

* CURRENTLY 

STR�AM ELEMENTS IN PkASE I1 

CONTROL STREAM INSTRUCTI~GNSFOR COMPILIEtC 

PHASE 11, 

PROCEDURE FILE kkiLCH OEFIhES THE STORAGE AREA 

FOR PHASE II, 

EXECUTIVE PROGRAM FOR PHASE 11, 

OYNAMICALLY ALLCCATES ADDITOONAL CCRE, 

COMPUTES EXPANOED INCOME, 

CALCULATES TAX LIABILITY, 

CALCULATES ALLOkABLE OEDUCTIIONS, 

IMPLEHENTS AODITIONAL DEDlrCTICN CATEGCRIES 

INTO THE ALLOWABLE DEDUCfPCkS, 

DETERMINES TAX FROM ThC TAX RATE SCHEDULE, 

ROUNDS CALCULATED FIGURES, 

CALCULATES THE ELDERLY CREDIT, 

UPDATES THE STATISTICAL TABLES, 

INPUTS TAX RETUHN OATA FRCH THE INCOME TAX 

DATA SAMPLE, 

UNPACK3 A DATA RECORD (SEE PPPENOIX A,)

OBTAINS AN INDE% CORRESPOttGING TO A 

6AACKETED INTERYAL, CONTXNLJGUS INTERVALS, 

OBTAIhS AN INOEX COARESPOhDZNG TO A 

BRACKETED INTERVAL, NONmCCNfINUOUS INTERVALS. 

CALCULATES A SURCHARGE. 

ROUTINE FOR REBUGGING TAX CPLCULATIOhS 

TABULATES TAX AN0 EXPANOEO INCORE BY FAMILY 

SIZE FOR PLAN X L PLAN Ye 

INaCTlVE 
TREASUFiY PEHSGNAL IfvDIVIDUAL INCOME TAX HODEL. 27 JON 78 

5.5. PHASE III. 

5'6 

PhASE I11 OF THE TAX HGCEL IS DESIGhEO TO PRCCESS ANC CUTPUT THE 

RESULTS OF PHASt II. UPOF( ENTRY IhTO PPASE EIIi THE PRGGRAV 

SCAL�S ThE RESULTS, EXTENDS ThE PCPULATION CCLNTS, AN0 CQTPUTS A 

COV�R PAGE, IM~EDIATELY THEREAFTER, THE PRGGAAH HILL INPUT EACH 

STATISTICAL TA6t.E REQUESTED IN PHASE IFROM TI=� TEMPCHARY DATA 

FILE CREATED IN PHA3E XI. AFTER THE PARTICULAR TABLE HA3 BEEN 

INPUTTED, A SUBPROGRAM DESIGNED TO PERFCRM TkE FINAL PRCCESSING 

AN0 OUTPUT FOR THAT TABLE IS CALLED. ThE SLIBPROGRAM HILL OUTPUT 

EACH PAGE OF THE TMLE THAT THE USER REQUESTED Ih THE PHASE I 

INPUT, 

TAaLE 5.5.1 PRESENTS THE SUBPROGRAPS AND CONTRGL STREAM ELEMENTS 

GROUPED I& PHASE 1110 IN AOOITIOlvr APPENOIX 6 PROVIOES A OETAILEG 

EXPLANATION OF SUBROUTfhE EXTENDO 
TREASbRY PEHSONAL INOIVIOUAL INCCME TAX MODEL, 27 JUN 78 5-7 

TABLE S.5,1: SUBPRCGRAMS AN0 CCNTROL 

IN I11 

COMPILE3 

CSAVE3 

TABIA 

TAeZ 

TAB3 

TAB4 

TAe5 

TAB6 

TA67 

STORE 

STREAM ELENENTS PhASE 

CQNTRCL STREAM INSTRUCTIOhS FOR CCMPILI~G 

PHASE 111, 

PROCEDURE FILE HhICH DEFIhLS THE STORAGE 

4LLOCATIOk FOR PHASE 111. 

EXECUTIVE PROGRAM FOR PHASE 111, 

EXTENCS THE RE31iLT3 (SEE APPENCIX 81, 

PROCESSES THE RESULTS FOR TABLE 1 AND CUTPUTS 

TABLE 1, 

PROCESSES THE RESULTS FOR TAeLE 1A Ah0 OUTPUTS 

TABLE 1A, 

PROCESS THE RESULTS FGR TABLE 2 ANC OUTPUTS 

TABLE 2, 

PROCESS THE RESULTS FOR TA8LE 13 AkD OUTPUTS 

TABLE 3, 

PROCESS THE RESULTS FCR TA8LE 4 AND OUTPUTS 

TABLE 4. 

PROCESS THE RESULTS FGR Tb@LE S AND CUTPUTS 

TABLE 5, 

PROCESS THE RESULTS FOR TABLE 6 AND OUTPUTS 

TABLE 6, 

PROCESS THE RESULTS FOR TABLE 7 AND OUTPUTS 

TABLE 7, 

STORES PRE-SELECTED RESULTS FRCM ThE SUMMARY 

PAGES OF TAUCf IA AND 5 LF( A TEMPCRARY FILE, 
TREASLrffV PERSOhAL INOIVIDUAL INCOME TAX MOOEL, 27 JbN 78 5-8 

5.6, CTHER SU~PRGGRAMSAN0 CONTROL STR�AMS, 

THE TAX MOOEL PROGRAM FILE ALSO CGNTAINS OTbEFi SUBPRCGRAMS AND 

CONTROL STREAM ELEMENTS WHICH MAY RE USED AS hEEDE0, ThEQE ARE 

PHESENTED IN TABL� S,6,1 AND ARE SELF-EXPLAhATORY, 

5w6a1: OTHER SUBPROGRAMS AN0 COhTRCL 

STREAM ELEPENTS Ih THE TAX 

MQOEL PROGRAM FILE 

0-00-

ELEPEhT 

NAME 

COMPILE4 CONTRCL STREAM INSTRUCTIONS FOR COPPILING 

VARIOUS SUBPROGRAMS OF A VISCELLANEOUS NATURE, 

*XOT72 CCNTROL STREAM INSTRUCTIONS FOR COLLECTING AN0 

OVERLAYING THE RELOCATABLE ELEPEhTS Of ThE 

TAX MODEL# 1972 TAX LAW, TBIS SET OF 

INSTRUCTIONS INCLUDES BLKOATAI'ZZ IN THE 

COLLECTION, * X GI T 77 CONTROL STREAM IhStRUCTIOhS FOR CCLLECTING AN0 

OVERLAYING ThE REbOCATA6LE ELEPENTS GF ThE , 

TAX MOOEC, 1973 TAX LAk, THIS SET aF 

INSTRUCTIONS fNCLUOE3 BLKOATA/73 IN TbE 

COLLECTION, 

XQT7S CONTRGL STREAM INSTRUCTIOhS FOR COLLECTING AND 

OVERLAYING THE RELQCATABLE ELEVENTS GF ThE 

TAX MCOEL, 197s TAX LAW, THIS SET OF 

IhSTRUCTIGNS INCLUDES 6LKDATA/7S IN THE 

COLLECTION, 

XOT76 CONTRGL STREAM INSTRUCTIONS FOR COLLECTING AND 

OVERLAYING THE RELOCATA8LE ELEPENTS QF THE 

TAX MCDEL, 1976 TAX LAW, ThIS SET OF 

INSTRUCTIONS INCLIIDES BLKOATA/76 Ik TkE 

Cl2LLECTION, 

XQT77 CaNTRCL STREAM INSTRUCTIllhS FOR CCLLECTING AN0 

OVERLAYING THE RELOCATABLE ELEMENTS OF THE 

TAX MOOEL, 1977 TAX LAW, ThIS SET OF 

INSTRUCTIONS INCLUOES BLKDATA/77 IN THE 

COLLECTION, ~ ~ o ~ ~ . ~ ~ ~ * ~ ~ w o o - m ~ o ~ ~ ~ o ~ o ~ ~ a m ~ o ~ ~ ~ ~ w ~ ~ ~ 

* CURRENTLY /NACTIkE 
TREASURY PERSUkAL 

XOT78 

CUVERP 

UPOATE 

PACKER 

YRTOAG 

BURSET 

BURTAB 

TABCUT/VER3 

H� A 0 / V E R.3 

CENTERIVER3 

NkRRCR/LER3 

*UNPKE RO 

*S AMP LEO 

RANOU 

SHOREC 

75LABEl.S 

LIST 

LISTING1 

LLSTIEtG2 

LISTIhG3 

IhDIVIOUAL 'INCOME TAX MODEL, 27 JUN 78 5-9 

CCNTRCC STREAM INSTRUCTIOM FaR cauEciINC ANO 

OVERLAYING THE RELOCATABLE ELEPENTS OF THE 

TAX MODEL, 1978 TAX LAk, TPIS SET GF 

IhSTRUCTIONS INCLUOES BLKDATA/70 IN THE 

COLLECTIONe 

SUBPRC.GRAfl TO PRODUCE A CCVER PAGE THAT PRECEEOS 

THE OUTPUT OF EACH TAX MOOEL RUN, 

PROGRAM TO UPDATE THE TABLEpAKEA DIRECTORY 

ASS�flBLY SUBPROGRAM TG PACK ThE INCOME TAX 

RETURh DATA Ih PREPARING A FACKED DATA 6ASEe 

SUBPRGGRAH FOR CONVERTING YEAR OF BIRTH TO AGE, 

SUBPRGGRAM TO SET HYPGThETICAL VALbES FOR 

AGI, DEDUCTIONS, AND EXEMPTICNS IN PRODUCING 

BURDEN TABLES, 

SUBPROGRAM TO CUTPUT EACH LINE OF THE 

BURDEN TABLES, 

SUBPROGRAM TO OUTPUT GENERALIZED TABLES, 

SUBPROGRAM TO PRGDUCE TITLES AND COLUMN HEADINGS 

FOR ThE TABLES PRODUCED BY TABGUT/VER3. 

SUBPRCGRAM TO CENTER TITLES Ah0 COLUMN HEADINGS 

F'OR ThE TITLES AND HEADINGS PRODUCED BY BEAO. 

SUBPROGRAM TO HAhOLE ERRORS ENCOUNTEREO 8Y 

TABOUT/VER3,

OLD UNPACKER SUBPROGRAM, 

OLD SAMPLE SUBPRCGRAP, 

SUBROUTINE TO GENERATE RAhOCM NUMBERS, 

SUBRGUTINE TO OUTPUT EACH OITA XTEP Oh A TAX 

RETURN AN0 ITS DESCRIPTIOhe 

'ADD' DECK CONTAINNING THE LABELS FOR 1GUTPUTING 

A TAX RETURN USING SUBROUTIhE SHORECe 

'ADOt DECK CONTAINING CONTRCL STREAM 

INSTRUCTIONS TO LIST THE ELEMLkTS 

OF THE TAX MODEL FILE,

ADO^ DECK CONTAINING ci"FacL STR[;NI 

IIVSTRUCTIONS TO LIST THE ELEPENT3 CF PHASE I 

OF THE TAX MOOEL FILE, 

'ADD' DECK CONTAINING COkTRCL STREAM 

INSTRUCTIONS TO LIST THE ELEMENTS CF PHASE 11 

OF THE TX MODEL FILE, 

'ADD' DECK CONTAINING CONTRCL STREAM 

IfvSTRUCTIONS TO LIST TH� ELEPENTS CF PbASE 111 

OF THE TAX MOO�L FILE, 
TREASURY PERSljhAL I~DIVIDUAL INCOME TAX MOOEL. 27 JUN 79 5-10 
TREASURY PERSONAL IlvOIVIDUAL INCGME TAX MODEL, 27 JUN 78 5-11 

APPEIvDIX P 

A. 1975 TAX CALCULATOR, THE 1975 TAX CALCULATCR DIFFER3 ONLY 

SLIGHTLY FROM THE 1973 TAX CALCULATOR AN0 I3 ESSENTIALLY TH� SAME 

AS IN VERSION S OF THE TAX MODEL, THE OIFFEREbCES THAT Dt EXIST 

ARE AS FOLLOlrcSr 

SUBROUTINE DEDUCT HAS BEEN MODIFIED t13 INCORPCRATE NEW CALI 

CULATZCNS OF THE INVESTMENT INTEREST LIMITATLChr THESE NEh 

CALCULATIONS EWPLOY AODITIONAL OATA FROM ThE SCI THAT WAS 

PREVICliSLY UNAVAILABLE. 

THE 'NC BEhEFfT' RULE HAS BEEN MODIFIED SLLGkTLY IN AN ATTEMPT TO 

APPROXIMATE PROPOSED REGULATION 1.57-40 

THE COCING FOR THE MAXIMUM TAX HAS BEEN ALTERED SOMEkHAT TG 

INCORPCRATE THE 5 YEAR AVERAGING OF PREFERENCESr 

THE EARNED INCOME CH�OIT CALCULAfI.CN WA3 MOOIFIED TO EMPLOY 

OtPkNOENT CHILDREN AS A REQUISITE IN OEf�RMINIhG ELIGIBILITY FOR 

THE CREDIT, CHILDREN AT HOME AND AWAY FROM kCPE EXEMPTIOFtS hERE 

NOT AVAILABLE Ch THE 197~3OATA 8A3E BUT ARE AVAILABLE ON THE 1975 

OATA BASE, 
TREASURY PERSONAL INDIVIDUAL INCOHE TAX MODEL. 27 JUN 78 5- It 

APPENDIX 80 

8, SUBROUTINE UhPKER. 

IN ORDER TO UND�RSTAND kOk SU6ROUTINE UhUPKER FUNCTIONS, CChSIDER 

THE ORIGINAL TAX hOOEL OATA BASE MHICH CCNSISTS OF ONE RECCRD FOR 

EACH IhOIVIDUAL INCCHE TAX RETURN, EACH RECOfiD CONTAINS OVER 200 

DATA ITEMS# SOME OF WHICH HAVE A VALUE OF ZERC. AFTER THE DATA Oh 

EACH RECORD HAS ~EEN*PACKED", A TYPICAL OF OATA PIGHT 

APPfAR AS IN FIG. S08,l. SUBROUTIN� SAMPLE IhPUTS THIS BLOCK OF 

DATA IhfO A STORAGE LOCATION OF 1792 kGgDS Ah0 CALLS SUBRGUTINE 

UNPKER. 

.SUBROUTINE UNPKER ACCESSES THE FIRST kdRD OF TbE DATA YUCK, THLS 

WQRD CCNTAIh3 A COUNT OF THE NUM8ER OF "PACKEC" RECGRDS IN THE 

6LOCK, IN ThIS EXAMPLE 12, NEXT, UNPKER CALCLJLATES THE NUMeER OF 

BIT MASK urCRO3 FROM THE RECORD LENGTH PROVIOEG IN THE ARGUMENT 

LIST GF THE CALL TO UNPKER, FOR THE CURRENT SAMPLE, THE NEXT SIX 

WURDS MOULD BE 611 MASK tQRDS, A OETAILED FICTURE OF THE FIRST 

BIT MAQK WORD Ib DATA RECORD 1 HAS BEEN PROLICED fN INSERT A. 

EACH BIT OF THE en MASK WORD IS SET TO o IF A ZERO DATA ITEM WA3 

OELETEC FWOM TH~PACKED RECORD OR TG A 1 IF A NClN-ZERQ ITEP IS 

INCLUOED IN THE PACKED RECORD, THUS, UIvPKER PROCESSES TPE en 

MASK t3Y BEGINNING hJTH BIT 0, BIT 0 CORRESPC~OS TO CATA ITEM 1 

AND Ha3 A VALUE OF 1, THEREFGREt DATA ITEM 1 IS NOlu-ZEkC AN0 IS 

CONTAINED IN TH� PACKED RECORD AT A LOCATICE( b+l MOROS FPCW THE 

FIRST @IT MASK kOHO, IF IT IS ASSUMED THAT TFE PACKED RECORD IS 

TU BE UNPACKED INTO AN ARRAY NAMED XI TkEN QkPKER SETS X(tI=lSrO. 

UNPKER MOVES NEXT TO 611 1 kHICH CORRESPOhDS PC DATA ITEP 2. 

SINCE BIT 1 13 ZERO, DATA ITEM Z kA8 NOT INCLUCEO IN ThE PACKED 

RECORD, TWEFOAE, X(~]=O.O BY DEFAULT, UNPKER CONTINUES WITH 

611s 2 AN0 3 hFICH ARE 6aTH 
TREASUffY PERSONAL INDIVIDUAL INCOME TAX MOOEL. 27 JUN 78 S-hZ 

I 

FIG. 5.8.1: A HYPOTHETICAL BLOCK OF PACKED- CATA 
TREASURY PERSONAL INDIVIDUAL INCON TAX MODEL, 27 JUN 7e 5114 

ZERO, THE NEXT BIT 19 BIT 4 hHICh CORRESPmOS TO DATA ITEW 5 AND 

HAS A VALUE OF 10 SINCE DATA ITEM S I8 NON-ZERO, IT 13 INCLUOEO 

IN THE PACKED RECORD AT A LOCATION 6+2 WORDS FROM THE BIR3T BIT 

MASK kCRD, HENCE, X(S)==20,0, UNPKER CONTINUES IN THIS FASHION 

UNTIL ALL 36 81T3 OF THE FIRST BIT MASK WOAD FAVE BEEN PROCESSEUe 

AT THE COMPLETION OF PRCCESSING THE FIRST BIT WASK WORD0 THE X 

ARRAY CONTAINS ThE FOLLOWING VALUES: 

X(11 15.0 X(9) = 25.0 

XCZ THRU 4) f 0-0 x(ia THRU 19) = 0.0 

X(S1 =-to ,0 xcao1 = ,3000 

X(6 THRU 8) 8 0.0 X(21 THRU 36) a 0.0 

UNPKER CONTINUE3 WITH THE SECONO BIT MA3K wORO kHICH HAS BITS SET 

TO 0 OR 1 FOR DATA ITEMS 837 THRU 'I.2, THE ThIGOi FOUATHI, FIFTHr 

AND SIXTH BIT MASK WORDS CONTAIN 0 OR 1 BITS FqCR OATA ITEMS 73 

THRU 108, DATA ITEMS 109 THRU iw OATA ITEMS 14s THRU ieo, AND 

QATA ITEMS 181 THRU 216 RESPECTIVELY, 

AFTER THE FIRST PAChED DATA RECORO HA3 8EEN !.INPACKED0 SIJ~ROUTIN� 

UNPKER Maw TO THE SECOND PACKED CATA RECORD, THE ~ECUNOPACKED 

RECORD BEGIN3 AT A LOCATION B+N WORDS FROM THE BEGINNING OF THE 

BLOCK WHERE N IS THE NUMBER OF DATA ITEMS IN THE FIRST PACKED 

RECURD. IN THIS EXAMPLE, ThE SECONO PACKED RECORO WOULO BEGIN 

B+Y=lZ hORDS FROM ThE BEGINNING OF THE-BLOCK, 

SUBROUTINE UNPKER CONTINUES IN THE ABOVE FASkIlON UNTIL ALL PACKED 

RECUR08 HAVE BEEN UNPACKED, AND THEN 8ECINS A NEk BLOCK ;OF DATA, 
TREASURY PERSONAL INDIVIDUAL INCOME TAX MODEL, 27 JUN 78 5-tS 

APPENOIX C 

c. SUljROUfINE EXTENO, 

MOST CF ThE RESULTS GENERATED BY PHASE If CF ThE TAX MODEL ARE 

TAbULTAED 9Y SCREDULE (SIIUGLE, MAHRIED FILIhG JOINTLY AND HARRIED 

FILING SEPERATELYr AND hEAO OF HOUSEHOLD), BY TYPE OF OEDUCfION 

(1TF;MLZED AN0 STAIUOARD), AND BY AOJUSTED GROSS INCOME CLASS, 

SIYCE THERE ARE THREE SCHEOULt3, TWO OEDUCTI~Gh TYPES, AN0 NIhE 

ADJUSTED GROSS INCOME CLASSESiTHE RESULT3 CAN BE CONCEPTUALIZED AS 

FILLI~GTHE ThREE DIMEhSICNAL 3PACE ENCLOSEC @Y ThE PERIMETER Of 

THE TbREE OIHENSIONAL OIAGRAM ILLUSTRATED IN FIG, S.C.1. 

+-- +m=*+w--+--w+ 

/ / / / / I

/ +r-r+mrr+riw+ + 

/ / / / /1/1

/ +wrr+wrr+rrr+ + + 

/ 1 / / /I/t/

/ +-rr+rrr+rr*+ + + 

/ / 1 / /l/I/

/ +rrr+rrr+rmr+ + + 

9 AGI CLASSES < / / / /Ill/

/ +rrr+ror+*or+ + + 

/ / / /I/t/

/ 

/ +rrr+rmr+rr-+ + + 

/ / /I/t/

1

/ +--.+-*-+--*+ / 

+ + 

I / 1 / /Ill/

/ +DW-+OrO+O-r+ + + 

/ / 1 1 11/1/ +-- +rrr+rrr+rrr++ '+ 

a TYPES OF I I I I 1/1/

OEDUCTIONS < +r-r+rrr+rrr+ + 

I i I I I / *-- +---+mwo+"w+ 

3 SCHEDULES 

FIGURE 5,C.l: ORIGINAL ARRAY CF RESULTS 
TREASURY PERSONAL INOIVIDUAL INCOME TAX MODEL. 27 JUN 78 5- 14 

IT IS CESIRABLE TO hAVE SUMMARY MEASURES GF TFESE RESULTS AS WELL 

AS THE OISAGGREGATED RESULTS, SPECIFICALLY, IT WULC BE CONVIENT 

TO HAVE ThE RESULTS TABOLATED FOR BOTH TYPES CF DEDUCTLCNS BY 

SCHEDULE FOR EACH ADJUSTED GROSS lNCGME CLASS, IN AOOITfOh, A 

SUMMARY OF ALL SCHEOULES BY TYPE OF OEOUCTECk AND BCTH TYPES UF 

O�OUCTIQNS, IS OESIRA6LE FOR EACH AOJUSTEO GRCSS INCCME CLASS. 

LASTLY, A SUMMAHY CF ALL ADJUSTED GHO88 INCCPE CLASS&$ BY SCh'EDULE 

AND BY ALL SCHEDULES IS NEEDED, TC ACCCMPLISF TPIS, THE THREE 

DIMEkSIONAL SPACE FILLED bY THE DISAGGREGATED RESULTS ?4UST BE 

EXTEkOEO AS ILLUSTRATED IN FIG, S,C,Z TO ALLDk FOR TCrE CONPUTEO 

SUMMAGY RESULTS. 

+rr +rrm+rrr+mrr+r=r+ 

3 SCHEOULES &NO 

ALL SCHEDULES 

FIGURE 5,C.Z: EXTENDED ARRAY CF RESULTS 
TREASURY P�RSONAL INOIVIDUAL INCCME TAX MGDEL. 27 JliN 78 5-17 

APPENDIX 0 

0, THE OVERLAY MAP OF XQT75, 

TbE ELEMENT XQT75 CONTAINS ThE CONTRUL STGtAM STATEPENTS 

U3EO TO COMBINE THE RELOCATAGLE ELEF�kTS INTO Ah AaSOLUTE 

ELEMENT, AATHER THAN COMeINNING ALL OF TWE HELCCATABLE 

ELEM�NT3 INTO CINE A8SOLUTE ELEMENTI XQT75 I8 SEGMEluTED TO 

PRODUCE SEVEHAL ABSOLUTE ELEMENTS. EACh AijSClLlJTE �tEMENT 

OVERLAYS A PART CF OH ALL Of THE PREVfCLS AbSOLUTE ELEMENT 

AS SnCwh IN FIG. 5.0.1 AND FIG. 5.0.2. 

IBANK DRAWN TC SCALE: 200 lriOROS OECIMAL PER DASH 
, 

THEASbRY PERSOhAL IhDIVIDIIAL INCOME TAX MCOEL, 27 JUh 78 5-10 

i 

OBANK DRAWN TO SCALE: 300 MOROS OECIMAL PER OASb 

FIGURE 5.0.2: OEANK OVERLAY OF XQT7S 
TREASLJRY PERSONAL INDIVIDUAL INCOME TAX MGDEL. 27 JlrN 78 5-.I9 

APPENDIX E 

E, TH� 1978 TAX CALCULATOR, 

THIS APPEhDIX IS INTENDED TO MAkE ALL CONCERhEO AWARE CF THE 

STATUS OF EACH PRQVISICN GF THE 1978 TAX ACT &S REFLECTEC IN THE 

1978 TAX CALCULATOR, 

PHOVISIGNS ACCOUNTED FOR IN THE MOOEL OR DATA BASE8 wm~mm~~mmmm~mmm~~~mmm~~mmmmmm~~ommm~mm~m-~~m~~m~mmm 

FLAT STANOARO DEOUCTAUN oF t~oo~3~001~~oo 

CONVERSION OF 9-12 MONTH L9NG TERV GAIhS INTO 

SHORT TERM GAIhS 

CAPITAL Loss LIMITATION OF w000 

ALiMONY PAID MOVED A80VE THE LINE 

REPEAL CF SICK PAY FOR THOSE wa ARE NCT PERMANE~TLY 

DISABLED 

PHASEOUT OF SICK PAY FOR THE PERMANEhTLV OISABLEO 

AT S15,OQO AGI 

REPEAL CF CHILD CARE DEOU'CTION AN0 ALLPONY DEOUCTION 

ITEMIZED DEDUCTIONS IN EXCESS OF.6OX OF AGI ARE 

AN ADDITIONAL PREFERENCE ITEH 

MAXIMUM TAX IS CALCULATED USING PERSONAL SERVICE INCGHE, 

I�, EARNED INCOME PLUS PENSIONS 

REPEAL FLOGR ON PREFERENCE INCCME REDUCING THE MAXIMUM TAX 

REPEAL aF 5 YEAR AVERAGING CF PREFERENCE LNCCW 

EXEMPTLCN CREDIT EXTENOED TO AGED AN0 @LIhO 

OPTIONAL TAXABLE INCOME CREOIT DISALLChED FOR 

MARRIED FILING SEPARATE 

CHILD CARE CREDIT OF 20% GF RIPORTED CkILO CARE 

ExPo" UP TO A MAXIMUM OF ~2,000 FCR TnE FIRST 

DEPENDENT AND $4,000 FUR 2 CR MAE OEPEhOENTS 

INVESTMEhT INTEREST EXPENSE LIMITATOGIV PER 1978 LAk 

MINIHUlrl TAX I8 15% OF PREFERENCES IN EXCESS Of THE LARGER 

OF $10,000 OR 112 OF THE TENATIVE TAX AFTER CREDITS 

IMPUTATION TG CORRECT EXISTING CHILO CARE EXPENSE 

IMPUTATIGN OF ITEMitED DEDUCTIGNS TC STANOARD DEDUCTIONS 

THE 'NO-dENEFIT' RULE 

CREOIT FCR THE ELOERLY 
TREASURY PERSONAL IhOIVIDCIAL INCOME TAX MODEL. 27 JUN 78 5-20 

- POLITICAL CAWPPSGN CONTRIBUTlONS DEOUCTIGN AND CREDIT 

I) INVESTMENT TAX CREDIT 
4 I 

60 A DESCRIPTION OF ThE TAX MODEL INPUT PARACETERS. 

6.1. A GENERAL OVERVIEw. 

THE TAX MOOEL PROGRAM PROCESSES SEVERAL DIFFERENT TYPES OF DATA 

CARDS, SOME OF THE DATA CARD8 FOLLOW THE OLD CONVEhTIOh OF 

ASSIGkNING AN IOENTIFYING NUM6�R CONSISTING CF TkREE INTEGER 

DIGITS TO EACH CARD, IN THE DOCUMENTATION THAT FOLLOWS, THE FIRST 

DIGIT *ILL 8E REFERRED TO AS THE PAHT NUN~ERITHE 3�CONO DIGIT AS 

ThE SECTIUN NUPBER, AND THE THIRD OIGIT A8 TbE IDENT NUPBER, 

TflESE T~REEDIGITS APPEAffr RIGHT JUStIFIEDt Ih THE FIRST THREE 

FIELOS GF FOUR COLUMNS EACH ON SOP� DATA INPUT CARDS, AS 

ILLUSTRATED IN FIG, 6,1,1, fhE DATA CARDS NhtCH 00 NOT CGNTAIN 

IOENTIFYING NUMBERS ARE OF THk 'NAMELIST' GR FREE FCPMAT VARIETY, 

EACH PARAFETER INPUT CAR0 PROVIDES OATA FOR OIFFERUT BRCAC 

CATECGRIES OF VARIABLES EMPLOYED IN THE TAX KGDEL, CARES 

CGNTAINNING A PART NUMBER OF ONE PROVIOE CEhEfiAL INF!CRMATION FOR 

VARIOUS PURPCSESr SUCh A3 EDITING THE OUTPUT, DEFINING STUB 

CHANGES, EHPLOYlNG AN OPTIOhr ETC. CAR03 HITPaUt A PART NUMBER 

PROVIDE DATA aN A SPECrFIC TAX PLAN ANO HAY CCNTAIN INPCAHATION clu 

TAX SCP�DULESr THE LEV�L (3F EXEMPTIGN ALLGkANCES, OR VARIOUS OThEfi 

TAX PARAMETERS. 

AN EXAMINATION OF THE GENERAL STRUCTURE OF m INPUT DECK 

ILLUSTRAT�D IN FIG, 6,l.Z REVEAL3 THAT A MIluIPtrM Of 5 CARDS ARE 

NEEDED TO PRODUCE-A RUN, SINCE THE TAX MODEL ASSUPE3 THAT THE TAX 

PARAMETERS FCR THO PLANS ARE IDENTICAL (1.E.r PLAN X 3 PLAN Ylr Ah 

INPUT OECK CONSI3TXNG OF THE REQUIRED CARDS kILL PRODUCE ONLY 

.'TABLE lA, THE OPTIONAL CARDS ShOULD BE INCLUDED WHEN ACOITIONAL 

TA8LE8 ARE DESIRED Ah0 WHEN THE USER OESIRES PC POOIfY ONE OF THE 

TAX PLANS SO THAT THE TAX PARAVETERS OF PLAN Y ARE DIFFEREhf FROM 

THE TAX PARAMETERS Of PLAN X, 
THEASURY PERSONAL IluDIVIOCIAL INCOME TAX MODEL. 27 JUN 78 6-2 

FIG 6.102: GENERAL STRUCTURE OF Ab INPUT DECK 

6.2, GENERAL LOGIC 8 EDITING DATA CARDS. 

THIY CARO kAS PREVIQUSLY CALLED THE 100 CARD. TFIS INPtT CARD 

SPECIFIES INFURMATION CCNCERNING THE DATA FILE THAT HILL BE 

PROCESSSEDi WhAT YEAR THE OATA FILE SHOlJLO REFRESENTI HGh MANY 

RETURNS ARE TO BE PROCESED, AND -kHEN ThE NEk IIC ROUTIhE IS 

IMPLEFENTED-- WhAT ADDITIIJNAL VARIIl3LES NOT CtkTAINEO Ilrc THE BASIC 

OATA FILE ARE REQUIRED. THE FORMAT FOR THIS CIHD IS 'FREE FCHMAT' 

HJTHIR THE RESTRICTIONS OF A NAMELIST READ. P GENERALrZEO EXAMPLE 

CARO I3 ILLUSTRATED Ilu FIG. 6.2.1, 
TREASCIRY PERSONAL IIVOIVIDUAL INCOME TAX MOOEL. .27 JUN 70 672 

FIG, 6.2.1: A GENERAL S4HPLE CARD FORMAT 

WHERE NYEAA = THE YEAR THE TAX FILE SAMPLE kAS CREATED, 

hRET f TH� NuMtlER Of PHYSICAL RETURNS IN THE SAMPLE, 

NLEV :THE PROJECTED YE4R THAT THE TAX FILE SAMPLE 

SHOULD REPRESENT, 

NSTOP = THE NUVBER OF RETURN3 PO BE PROCESSEO, IF 

LEFT UNSPECIFIEDr ALL OF THE RETURNS h1l.L 

a� PROCESSED, 
THEASORY PERSONAL INDIVIDUAL INCaME TAX MOOEL. 27 JUN 78 4-44 

THE FCLLUWING MUST BE SPECIFIED LiNLY IF ADOITIGNAL VARIABLES 

NOT CCNTAINED IFC THE BASIC OATA FILE ARE REGLIRED, 

t-r 

I C>O C 4DDITIONAL VARIABLES BEGINNING kITH 

I THE 68TH VARIABLE IN TbE '0' ARRAY ARE 

I TO BE INPUTTED, 

NMAPD :C 1113 ALL THE REMAINNING VAffIA8LES Ih THE ID' 

I ARRAY ARE TG BE INPUTTEO, 

I 0 AS MANY VARIA8LE9 FROP TbE '0' ARRAY A9 

I AGE SPECIFIkD IN MAPD, 

t-w 

twI C>O C ADDITIONAL VARIMLE8 eEGINNING kITH 

I ThE 1st VARIA6LE IN ThE 'MM' ARRAY ARE 

I io BE INPUTTED. 

hHAPH :< 47 ALL THE AOOITIOkAL VARIABLES IN THE IMMt 

I ARRAY ARE TO eE INPUTTED, 

I 0 AS MANY VARIABLES FROH TbE 'MM' ARRAY A8 

1 AR� SPECIFIED XN HAPPI, 

t--

HAPO = THE SUBSCRIPTS FOR THE AODITOChAL VARIABLES 

THAT ARE TO BE INPUTTED FROM ThE '0' ARRAY. 

THIS IS REQUIRED ONLY NHEN NMbPO=O, 

MAPM :: THE SUBSCRIPTS FOR THE AODITPCFiAL VARIAeLE9 

THAT ARE TO BE INPUTTED FRUH ThE 'MH' ARRAY, 

THIS 13 REQUIRED ONLY WHEN NHPPM=O, 

6.2s2. CARD NUMBER 1108 GENERAL LGCIC $kITCH�S. 

THE FUhCTION OF THIS INPUT CAHO IS TO SPECIFY VALUES FOR TWENTY 

LUGIC SIUITCHES VrHICh ARE EMPLOYED BY THE TAX PGD�L IN OETERMIkING 

kliAT SEGrJENTS OF THE PROGRAM WILL BE PERFORPED, EACH LCGIC 8WITCh 

AN0 IT3 ASSUCIATEO VALUES ARE DE8CRIBED IN fA8LE 6.2.1. THE 

FORMAT FOR tHI3 CAR0 I9 PRESENTED IN FIG. 6.2.2 BELOh. 

FIG, 6.2.2: GENERAL LOGIC ShITCHES CARC FORMAT 
1 I 

THEASURY PERSOhAL llvOIVIOUAL INCOWE TAX MODEL, 27 JUN 78 6-5 

TA6LE 6,2*1: GENERAL LOGIC ShITCHES 

01 16 RESERVED FOR FUTURE USE 

UZ 17 RESERVED FOR FUTURE USE 

93 18 RESERVED FOR FUTUR� USE 

u4 19 CONTROLS THE READING OF LABELS 

FOR THE DISPLAY OF A RETURN 

0: kU0 LALJELS ARE TO BE REA0 

is ueas ARE TO at REAO 

05 20 RES�RVED FOR FUTURE U3E 

06 21 RESERVED FOR FUTURE USE 

07 22 ALLOkS ThE USER TO REOEFIIU� PGI 

CLASS BREAKPOINTS aR TO SELECT 

OPTIONAL AGI CLASS BREAKPOINTS 

(ThESE ARE USE0 TO INDEX THE 

OUTPUT TABLES1 

00 THE EXISTIN6 AGI CLASS BREAKPOINTS 

OF 6.2,12 ARE TO BE EMPLOYEC 

1:: N�k AGI CLASS BHEAKPOINTS kILL BE 

DEFINED 

2: HIGH OPTION AGI CLASS BREAKPO&kTS 

ARE TO BE EMPLOYED 

$33 LOW OPTION AGI CLASS BREAKPGINTS 

ARE tG 0E EMPLOYED 

43 PRE-1975 AGI CLASS BREAKPGIhTS 

ARE TC 8E EMPLO?EO 

08 23 RES�RV�D FOR FUTUR� USE 

m 

N 

N 

N 

Y Tit7 

N 

N 

N 
TREASURY PERSONAL INDIVIDUAL INCOME TAX MOOkL, 27 3UN 78 6-6 

TA8LE 6.2.1: GENERAL LOGIC SkITCHES 

09 24 §ELECTS THE SOURCE OEFIIUITICN 

CF AGI OR INCOME USED IN 

INCEXIht TH� OUTPUT TABLES 

00 SGURCE IS ThE AGI QR INCOP� OEFINI- N 

TION CF PRESENT LAW 

I= SCURCE 13 THE AGI aR INCOYE OEFINI.~ N 

TIOlv IN PLAN X 

2: SGURCE IS ThE AGI OR INCOVE OEFINI- N 

TIOk IN PLAN Y. 

,3= SOURCE IS REALIZCO HQU3EHCLO XhCaME N 

4= SOURCE IS EXPANDED INCOME N 

10 25 MERGE FILE I~OICATOR 

0s PRODUCTION DATA FILE (DEFAULT) N 

13: MERGED DATA FILE Fc 

11 tb CONTROLS THE COMPUTATION OF TPaLE 1 

(THIS TABLE MAY BE 120 PAGES LCFiG) 

03 00 NOT COMPUTE fAtlLE 1 N 

1" COMPUTE TA8LE 1 USIhG THE BGEAK- y 111,112 

POINTS FROM 6.2.9 

2: CCHPUTE TABLE 1 BUT USING ThE Y l1lrllZ 

USER SUPPLIED BREAKPOINTS 121,122 

12 27 CONTROLS THE COMPUTATION OF TAeLE 2 

(ThIS TABLE MAY BE 120 PAGES LiCNC) 

OaOO NOT COMPUTE TABLE 2 N 

1ZCOMPUTE TABLE Z USING THE BREAK- Y 113,114 

POINT3 FROM 6,Z*lO 

2s CCMPUTE TABLE 2 BUT USING ThE Y 113,114 

USER SUPPLfEO BR&AKPOINTS 123, 124 

12s 

13 a8 CONTROLS THE COMPUTATLON OF TABLE 3 

(THIS TA6LE MAY BE 12 PAGES LGhG) 

U= DO NOT COMPUTE TneLE #3 N 

1: COMPUTE TABLE ,3 Y 115 
I I 

THEASUfiY PERSGNAL INOIVIDUAL INCGVE TAX MODEL, 27 JCN 79 6-7 

TABLE 6,2,1: GENERAL LOGIC 8kITCHES 

14 29 CONTROLS THE cowuiaira~aF TMLE 4 

(THIS TABLE MAY BE 12 PACES Lam 

00 QO NOT COMPUTE TABLE 4 N 

1: COMPUTE TABLE 4 V 116 

1s 10 SELECTS THE PLAN USED IN COHPLTIFtG TABLE 6 N 

0 3. PLAh Y 

1 = PLAN X 

16 31 COf'4TRULS THE COMPUTATIOh OF Tlr@LE 6 

(THIS TABLE MAY BE 40 PAGES LOhG) 

Os00 NOT COMPUTE TA8LE 6 N 

1' COPPUTE TABLE 6 Y 117 

17 32 CONTROLS THE COMPUTATION OF TABLE 7 

(THIS TABLE MAY BE 60 PAGE3 LChG)

(I= DG NOT COMPUTE TABLE 7 N 

1: COMPUTE TABLE 7 USING THE BREAK- Y 118 

POINTS FROM b,Z,11 

2s COMPUTE TABLE 7 USING THE Y ll8rlZ6 

USER SUPPLIED BREIKPOINTS 

18 33 CONTROLS ThE CALCULATION OF PCbk X 

0s DQ NOT COMPUTE PLAN X (DEFAbLTI N 

1: COMPUTE PLAN X N 

19 34 COhTROLS THE CALCULATION OF BUROEk 

TA0LES 

O: DO NOT COMPUTE BURDEN TABLES h 

(DEFAULT) 10 COMPUTE BURDEN TABLES USING THE N 

PHE-SET OP'TION8 FOR ThE VARIOUS 

PARAMETERS 

7: CGMPUTE BURDEN TAtlLES USING THE Y SBUROEN 

USER SUPPLIED PAffAMETERS (SEE 

SECTICN 8.6 FOR DETAILS ON IrSAGEl 
TREASURY PEHSUNAL INDIVIDUAL INCOME TAX MODEL, 27 JliN 78 6-8 

I 

TABLE 6,201: GENERAL LOGIC ShITCHE3 

LO 35 STORES TAX MODEL RESULTS 

FROM TABLES 1A AND 5 

00 00 HOT STORE RESULTS 

1s STORE THE R�SULTS 
I 1 

TREASURY PEH$ffF(AL IkOIVlOUAL INCOFE TAX MODEL. 27 JbN 78 

6.2e.3, CARD NUMBERS 111 & 1121 TABLE 1 PRIhT CONTROL. 

HOTH CF ThESE INPUT CARDS ARE OPTIONAL UNLESS TH� VALUE ASSIGNEO 

TO LOGIC SNITCH NUMBER 11 ON CARD 110 IS A 1 CR A 2. SINCE THE 

OUTPUT OF ThBLE 1 MAY BE UP TO 120 PAGES IN LENGTH# THIS CARD 

SPECIFIES HHICH PAG�S Of THE OUTPUT WILL BE PRINTED. AhY 

INOXVIOUAL PAGE OF THE OUTPUT CONTAINS OISTRIEUTIONAL STATISTICS 

CLASSIFIED BY AGI CLASS, BY TYPE OF OEOkjCtLChr Ah0 6Y TAX 

SCHEDCILE, IN TABLE 6,2,2 WHERE THE CLAS3IFICPtICk TFAT APPLIES TC 

EACH PAGE 13 PRESENTED, EACH PRINT SHITCH NCIYBER IS IOE~TICALIITk 

THE PAGE NUMeER FOR TABLE 1, FOR EACH PAGE TbAT I3 DESIRED FROM 

TAeLE 1, THE USER MUST ASSIGN THE CGRRESPONCIhG PRINT CONTROL 

SNITCH A VALUE Of 1, OTFERWISEI THAT PAGE &ILL NOT 8E PHINTEO, 

CARO NlJhBER 111 CONTAINS THE PRINT CONTROL SNITCkES FOR THE FIRST 

60 PAGES OF TMLE 1 AND CARO NUMBER 112 CONTALNS THE. PRINT CONTROL 

SWITChES FOR THE LAST 60 PAGE3 AS SHOkN IN FIG, b.Z.5, 

FIG. 6,twf: TA6t.E 1 PRINT CONTRCL ShITCH FORMAT 
TREASURY PERSONAL IF(0IVIDUAL INCOME TAX MODEL, 77 JUN 78 6-10 

TABLE 6,202: PRINT CONTROL SWITCHES FOR TABLE 1 

-------W-m--O-o-----mm--a--m-------m----a---a--

PRINT CAR0 AGI TYPE OF 

SWITCH COLUMIv CLASS REDUCTION scHEouLE --w-oam-------w-~o~~~-~-~mo~~-~~~~~~~~~~~

1 L3 ****- S ITEMlZtO SINGLk 

2 14  - 5 ITEMIZED HARRIED 

3 25 ** **- S ITEMIZED HEAD HH 

4 16  - 5 ITEMLZEO ALL SCHD 

5 17 ** **- S STANOARD SINGLE 

4 18 e***- 5 STANOARD HARRIED 

7 19  I 5 STANOARO kEA0 HH 

0 20 ** **- 5 STANOARO ALL SCHO 

9 21 ***a- s eoin 3INGLE 

10 22  - 5 6OTH ffARRIED 

11 23 ** **- 5 80TH kEAO HH 

12 24 ****- 5 BOTH ALL SChO 

13 25 5 - 10 ITEMIZEO SINGLE 

14 26 5 - 10 ITEMTZED HARRIED 

15 27 5 - IO ITEMrlZED HEPO HH 

I6 28 5 - 10 ITEMIZED ALL SCHD 

17 a9 5 0 19 STANDARD SINGLE 

18 30 S - 10 STANQARD MARRIED 

19 ~31 5 - 10 STANOAR0 HEAO Hh 

20 32 S - 10 STANDARD ALL SCHD 

21 33 5 - 10 BOTH SIhGLE 

22 34 5 - 10 0OTH MARRIED 

23 $35 5 - 10 BOTH hEAO HH 

24 *36 5 - 10 0OTH ALL SCHO 

25 37 10 - 15 ITEMIZED SINGLE 

26 38 10 - 15 ITEMLZED MARRIED 

27 -39 10 - 1S ITEMIZED hkA0 HH 

29 4t 10 - 15 STANDARD SIhGLE 

30 42 10 = 1s STANOARO MARRIED 

31 43 10 0 15 - STANDARD hEAO HH 

32 44 10 15 STANOARO ALL SCHO 

28 40 10 - 15 ITEMIZEO ALL 3CHD 

33 45 10 - 15 BOTH f INGLE 

34 46 10 - 15 BOTH MARRIED 

35 47 10 - 15 6OTH HEAO HH 

36 48 IO 0 15 BOTH ALL SCHO 

37 49 15 - 20 ITEMIZED SINGLE 

38 50 15 0 20 ITEMLZEO ffARRIED 

39 51 15 - 20 ITEPfZED hEAO HH 

40 52 15 - 20 ITEPIZED ALL SCHD ~ - o ~ ~ ~ ~ ~ - - D ~ ~ ~ ~ ~ o ~ o ~ 

*** MEAIUS hITkOUT LIMIT 
45 

TREASURY PERSONAL IkOIVIOCIAL INCOME TAX MODEL. 27 JllN 78 6-1 1 

TABLE 6.ZrLI PRIIvT CONTROL ShITChES FCR TABLE 1 

- - ~ - = w ~ ~ - - - - w ~ ~ w ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ w 

PRINT CARD AG1 TYPE OF 

SWITCH COLUMk CLASS DEDUCTION SChEDULE ~ ~ w w ~ ~ ~ w - - ~ - w ~ ~ ~ ~ ~ m ~ ~ ~ 

41 53 15 = 20 - STANCARD SINGLE 

42 54 15 20 STANDARO PARRIED 

43 s5 15 - 20 STANOAR0 bEAO Hh 

56 15 - 20 STAhDARD ALL SCbD 

44 ’ 57 15 - 20 BOTH SINGLE 

46 5a 15 - 20 BOTH MARRItO 

47 59 15 - 20 UGTH PEA0 HH 

48 60 1s - 2U WTH ALL SCHO 

49 61 20 - 30 ItEMIZ�D SINGLE 

50 42 20 = 30 ITEMIZE0 PARRIED 

s1 b3 20 - 30 ITEWIZED kEAD HH 

53 65 20 - 30 - STAhDARO SIRGLE 

S4 66 20 30 3TANOARO MARRIED 

55 67 LO 0 30 STANDARD hEAD HH 

52 64 20 - 30 ITEMIZED ALL 3CPD 

56 68 20 - 30 STAkOARD ALL SChO 

57 69 LO - 30 BOTH SLNGLE 

58 70 20 - 30 WfH MARRIEO 

59 71 20 - 30 6Olh HEAD HH 

60 72 20 - 30 8OTH ALL SCHO 

61 30 - 50 ITEMLZEO SIhGLE 

62 1 4’’ 30 = 50 ITEMIZED HARRIED 

63 1s 30 - 50 ITEMIZED kEAD HH 

64 16 30 - SO ITEWIZEO ALL 3CHD 

65 17 30 = 50 STANDARD SINGLE 

60 18 30 - 50 STAIUOARD MARRIED 

68 20 30 - 50

- STANDARO ALL SCHO 69 21 30 so BOTH SINGLE 

70 22 e30 50 - 8OTH NARRIEO 

71 a3 30 SO UOTh hEAD HH 

67 19 30 - SO STAkOARO H�AD HM 

72 24 30 - 50 BOTH ALL 3CHO 

73 25 50 - 100 ITEMIZED SIIvGLE 

74 26 50 - 100 ITEMIZE0 WARRIEO 

7s 27 50 = 100 ITEMIZE0 WfAO HH 

76 128 50 - 100 ITEMIZE0 ALL SCHO 

77 29 50 - 100 STANDARD SINGLE 

78 530 50 - 100 STANOARD PARRIED 

79 31 SO - 100 STANDARO HEAD Hk 

80 32 SO - 100 STAkOARD ALL SCPO ~ ~ o - m ~ ~ ~ - . - ~ ~ ~ ~ w w w ~ ~ ~ w m o 

*** MEAEtS WITKCUT LIMIT 
ALL 

TREASURY PERSCNAL IhOIVIDLIAL INCOME TAX MODEL, 27 JlJN 78 6-12 

TABLE 6.2.2: PRINT CONTROL 3hITChES FOR fA8LE 1 

81 33 

82 134 

83 s35 

84 36 

a5 37 

86 * 38 

87 39 

88 40 

89 41 

90 42 

91 k3 

92 BY 

93 45 

94 46 

95 47 

96 48 

97 49 

98 50 

99 51 

100 52 

101 53 

102 54 

103 ss 

104 56 

105 57 

106 58 

107 59 

108 60 

109 61 

110 62 

111 63 

112 64 

113 65 

114 66 

11s 67 

116 68 

117 69 

118 70 

119 71 

120 72 

50 - 100 

50 - too 

50 - LOO 

SO - 100 

100 - 200 

100 - ZOO 

100 0 200 

100 - ZOO 

100 - ZOO 

100 - 200 

100 - 200 

100 - 200 

100 - ZOO 

100 - 200 

100 - ZOO 

100 - ZOO 

200 -**** 

ZOO -  

ZOO -** ** 

200 -*e** 

ZOO -e*** 

200 -*e** 

ZOO -  

do0 -** ** 

200 -**** 

200 -*e** 

200 -**e* 

200 -**e* 

ALL 

ALL 

ALL 

ALL 

ALL 

ALL 

ALL 

ALL 

ALL 

ALL 

ALL 

BCTh 

earn 

BOTH 

8OTh 

ITEMLZED 

ITEPIZED 

ITEMIZED 

ITEVIZED 

STANOARD 

STAhCAAD 

STANDARD 

STANOARO 

.BOTH 

80TH 

BOTH 

t3OTH 

ITEMIZE0 

ITEMIZED 

ITEMIZED 

ITEMIZED 

STANOARD 

STANDARD 

STAkDARD 

8TAhOARD 

BGTH 

8OTH 

BOTH 

6OTk 

ITEMIZED 

ITEMIZED 

ITEMIZED 

ITEMIZED 

STANOARO 

STANOARD 

STANDARD 

STANOAAD 

8OTk

aain 

BOTH 

t30TH 

S1hGI.k 

MARRIED 

FEAO HH 

ALL SChio 

SINGLE 

MARRIED 

hEP0 HH 

ALL 9Ck0 

SINGLE 

MARRIED 

HEAD HH 

ALL SCHO 

SIhGLE 

MARRIED 

HEAD HH 

ALL SCPO 

SINGL� 

MARRIED 

MEA0 HH 

ALL SCHO 

SINGLE 

MARRIED 

HEAD HH 

ALL SCHO 

SINGLE 

PARRIED 

kEAD Hh 

ALL SCHO 

SIhGLE 

MARRItD 

HEAD HH 

ALL SCHO 

SINGLE 

MARRIED 

k�AO tiH 

ALL SCHO 

SINGLE 

MARRIED 

hEAC HH 

ALL SCHO 

*** MEAhS WITHOUT LIMIT 
J 1 

. TREASURY PERSONAL INOIVIDUAL INCOME TAX MQDEL. 27 JUN 78 6 - L3 

6,2,4, CARD NUMBERS lb3 & 1148 TABLE Z PRIhT COKTROL, 

BOTH CF THESE INPUT CARDS ARE OPTtONAL UNLESS THE VALUE ASSIGNED 

TO LOGIC SNITCH NUMBER 12 ON CARD 110 IS A 1 CR A 2, ThE 

DOCUMtifUTATION FOR THESE CARDS IS IDENTICAL TC THAT IN 6,Z,3 WHEN 

CAR0 NUMBERS 113 AND 114 ARE SUBSTITUTED FOR CARD NUPUERS 111 AND 

112 AND WHEN TABLE 7 IS SU8SlITUTEO FOR T&RLE 1, 

6.2.5, CARD NUMBER 115: TABLE 3 PRlNT CONTRCL, 

THIS INPUT CARD IS CPTIGNAL UNLESS THE VALUE ASSIGNED TO LOGIC 

SWITCH NUMBER 13 ON CARD 110 IS A I, EACH PAGE CF STATI3TICS IN 

THIS TA6LE ARE CLASSIFIED 6Y TYPE CF OEDUCTICh AND BY TAX 

SCHkDbLE, TABLE 6.7.3 OISPLAYS THE CLASSIFICATICIV CCRRESPGNOING 

TO EACH PAGE OF THE TABLE 3 OUTPUT, AS BEF'CRE, THE PRIkT CONTROL 

SIvITCh NUPBER IS IRENTICAL WITH THE PAGE NUPeER AND PUS1 BE 

ASSJGhED A VALUE OF 1 FOR EACH PACE OF TABLE I? THAT IS TC 6� 

INCLUDED IN THE OUTPUT, THE FORMAT THAT IS ECPCCYED FOR Th1S CARD 

IS SHOkN IN FIG, 6s2e4e 
THEASliRY PERSONAL INDIVIDUAL INCOME TAX MODEL, 27 JLN 78 6-14 

TABLE 6,203: PRINT CONTROL SkITCHES FOR TA6LE ,3 

1 lp3 ITEMIZED 

2 14 ITEMIZED 

3 15 ITEMLZED 

4 16 ITEMIZED 

5 17 STANOARO 

b . 18 STANDARD 

7 19 STANDARD 

8 20 STANDARD 

9 21 BOTH 

10 22 BOTh 

11 a3 BOTh 

12 24 BOTH 

SIhGLE 

~Ai?filED 

FEAO CF 

hCC SEHGLO 

ALL SCkD, 

SlhGLE 

PAFiRIED 

HEAC OF 

hOC8EHOLD 

ALL SChO, 

SIhGLE 

ClGRIEO 

HEaiO OF 

HCci SEhOLD 

ALL SCHD, 

602.60 CARD NUMaER 116: TABLE 4 PRINT CONTRCL, 

THIS I~PUTCARD IS QPTICNAL~UNLCSS THE VALUE ASSIGNED TC Lam 

SWITCH NUMBER 14 ON CARO 110 13 A 1, THE QCCbP�hTATIOk FOR THIS 

CARD 1s IDENTICAL TO THAT IN 602.5 WH�N CAR0 EJbHB�R 116 IS 

SUBSTITUTED FOR CARO NUMBER 11s AND kHEN TA@L.� 4 13 SUBSTITUTED 

FUR TAeLE 3, 
TREASURY PERSONAL ItUDIVIDUAL INCOME TAX MOREL, 27 JUN 78 6- 15 

6.2.7. CARD NURBkR 117: TABLE 6 PRINT CONTROL, 

THIS CARD IS QPTICNAL UhLESS THE VALUE ASSIGkED TO LCGIC SNITCH 

NUMtiEP 16 ON CAkD 110 IS A 1, THE STATISTICS COMPUTED FCR TA8LE 6 

AR� CLASSIFIEO dY AGI CLASS AN0 BY TAX SCHEDULE, EACH PRINT 

CUNTRUL SwITCh hUMeER IN TABLE 6.2.4 IS IDEhTICAL TO THE TABLE 6 

PAGE tuUMBER AND MUST BE ASSIGNED A VALUE OF 1 FOR EACH PAGE THAT 

IS TO ek PRINTED I& THE TABLE 6 OUTPUT. THE 40 PRINT CCNTROL 

SHITChES APPEAff Oh THE INPUT CAR0 A3 SHOMN IFc FIG, 6.Z.S. 

THIS CARD IS OPTIONAL UNLESS THE VALUE ASSIGNED TO LOGIC SWITCH 

NUHbER 16 ON CARD 110 IS A 1 OR A 2. THE STATISTICS PRESENTED IN 

TABLE 7 CIRE CLASSIFIED ey INCOME CONCEPT, BY PGI CLASS AECO BY TAX 

SCHkDULE. TAULE 6.2.5 PRESENTS ThE CLASSIFICPTIGN3 FOR EACH PAGE 

OF TABLE 7, AS BEFORE, THE PRINT SNITCH NUPBER, kHICH I3 THE SAME 

AS THE TABLE 7 PAGE NUH8ERi MUST HE ASSIGNED A VALUE OF 1 WHENEVER 

A SPECIFIC PAGE IS TO BE INCLUDED IN THE OUTPbT, THE 60 PRINT 

CONTROL SwITCHES FOR THI3 TABLE APPEAR ON THE INPUT CARO IF( THE 

SAME FCRMAT GIVkN FOR CARD NUMBER 11l(SEE FIG. 6.2e3). 
TREASURY PEH30NAL IkOIVIDUAL INCOME TAX MODEL. 27 JUN 78 6-16 

TABLE 6.2*4: PRINT CONTRCL ShITCWES FOR TPeLE 6 

-~0~~~~1~m~~~~=mm~~mw~~mo~mmm~~

PRINT CAR0 AGI 

3kITCh COLUMN CLASS SCFECULE ~ m ~ ~ ~ ~ o ~ ~ ~ - ~ m ~ - ~ ~ ~ ~ " m ~ ~ m w

1 113 ****- 5 SLhGLE 

2 14 *e**- 5 PARRIEO 

-3 1s  - 5 bEAO HH 

4 16 ** *+- 5 ALL SCHD 

S 17 S - 10 SINGLE 

6 18 5 - 10 MARRIED 

7 19 5 - 10 HEAD Hb 

8 20 5 - 10 ALL SCHO 

9 21 10 - 15 SINGLE 

10 22 10 - 15 PARRIED 

11 23 10 - 15 HEAC HH 

It 24 10 15 ALL 9CHO 

13 25 15 - 20 SINGLE 

14 26 t5 - 20 MARRIED 

15 27 1s - 20 h�AO HH 

16 28 CS - 20 ALL SCHO 

17 a9 20 130 8INGLE 

18 30 20 - 130 HARRIED 

19 31 ZO - 830 F�AO HH 

20 32 70 - ,30 ALL SCHIC 

21 33 130 50 SINGLE 

22 34 c30 - SO MARRIED 

23 -- 3s 30 - 50 hEAO HH 

24 36 130 - SO ALL SCHC 

25 37 50 - 100 SINGLE 

26 38 SO - 100 HARRIED 

27 39 50 - 100 BEAD Hb 

28 00 SO - 100 ALL SCHO 

29 41 100 - 200 SINGLE 

30 42 500 - 200 MARRIED 

p3 1 43 100 - 200 kEAD HH 

f3i? 44 100 - 200 ALL 3CHD 

r33 45 200 -**** SINGLE 

3s 47 ZOO -  HEAO HH 

f36 40 200 -** e* ALL SCHO 

37 49 ALL SINGLE 

138 SO ALL MARRIEC 

59 51 ALL HEAO Hk 

40 sa ALL ALL 3CHC ~ ~ O ~ m m W ~ O ~ * ~ ~ W D ~ ~ ~ ~ W ~ W ~ ~ 

,34 46 a00 -**** HARRIED 

*e** MEANS WITHOUT LIMIT 
1 b3 TOT, INC  - 5 SINGLE 8 MARRIEO 

a 14 TOT, INC ** **- S HEAD HH 8 ALL SCHO 

3 $5 TOT, INC s - 10 -SINGLE S PARRIED 

5 17 TOT, INC 10 0 15 SINGLE 8 MARRIED 

b 18 TOT, INC 10 15 hfAO Hh 8 ALL 3CHD 

7 19 TUT, INC 15 0 2 0 - SINGLE 8 MARRIED 

6 20 TUT, INC 1s 20 bEAO Hh 8 ALL SCHO 

9 21 TOT, INC 20 830 SINGLE 8 PARRIED 

4 16 TOT, INC s - 10 hEAD HH 8 ALL SCHO 

10 22 TOT, INC 20 - 30 FEAO HH B ALL SCHO 

11 23 TOT, fNC 30 - SO SINGLE 8 MARRIED 

12 24 TOT. INC *30 0 SO PEA0 HH 8 ALL QCHO 13 25 TOT. INC 50 m 100 SINGLE & MARRIED 

14 26 TOT, INC SO - 100 kEAO HH & ALL $CHO 

15 27 TOT. XNC 100 - 200 smLE 8 PARRIED 

16 28 TOT, INC 100 - 200 PEA0 HH 81 ALL QCHO

17 23 TOT, INC 200 -**** SINGLE 8 PARRIED 

18 30 TOT, INC 200 -  hEAD HH 8 ALL SChO 

19 31 TOT, INC ALL SINGLE Y MARRIED 

29 132 TOTI XNC HEAD HH 8 ALL SCHO 

21 133 AGI ** **.ALL 

5 SINGLE 8 FARRIEO 

22 )34 AGI  - 5 kEAD HH & ALL SCHO 

23 435 AG I 5 - 10 SINGLE &_MARRIED

24 136 AGI 5 - 10 ~EAOHH a ALL ScnO 

2s s37 AGI 10 tS SINGLE 8 MARRIED 

26 38 AG I 10 - 15 bEAD HH 8 ALL QCHO

27 t39 AGI 1s - 20 3IhGLE 8 MARRIED 

28 40 AGI 1s 20 hEAD Hh 8 ALL QCHO 

a9 41 AGI 20 m 130 SINGLE 8 CARRIED 

30 42 AGI 20 - 30 hEAO HH & ALL QCHO 

** ** MEAN3 WITHOUT LIMIT 
TREASURY PERSONAL INOIVIOU.AL INCOME TAX MODEL, 27 J’UN 78 6-18 

TABLE 6,Z,5: PRINT CONTROL SWITCHES FOR TAELE 7, 

31 43 AGI 30 - 50 

33 45 AGI 50 - 100

34 46 AGI 50 - 100

35 47 AGI 100 - 200

36 - 37 

38 

48 

49 

50 

AGI 

AGI 

AGI 

100 200 

200 -  

200 -** ** 

39 51 AGI ALL 

40 5% AGI ALL 

41 53 TAX, INC e***= 5 

42 

43 

S4 

5s 

TAX, 

TAX. 

INC 

INC 

*e**- 5 

5 - lu 

44 

4s 

56 

S? 

TAX, 

TAX, 

INC 

INC 

5 10 

10 15 

46 

47 

58 

59 

TAX, 

TAX. 

INC 

INC 

10 15 

15 - 20 

48 bo TAX. INC 15 0 20 

49 61 TAX, INC 20 --3U

50 62 TAX, INC 20 - 3 0

51 63 TAX. LNC 30 - SO 

52 

53 

54 

64 

65 

66 

TAX, 

TAX, 

TAX, 

INC 

INC 

INC 

930 0 SO 

SO - 100 

50 - 100 

32 44 AGI 330 - 50 

5s 67 TAX, INC 100 - ZOO

56 - 57 

58 

68 

69 

70 

TAX. 

TAX, 

TAX, 

INC 

INC 

INC 

100 200 

tUO -  

200 -** ** 

59 71 TAX, INC ALL 

60 72 TAX, INC ALL 

SINGLE 8 PARRIED 

FEAO HH B ALL SCHO 

SIIvGLE IL PARRIEO 

FEAO HH 8 ALL QCHO 

SINGLE & MARRIEO 

!=EA0 HH 8 ALL SCHO 

SINGLE 8 MARRIED 

rEAo HH t~, ALL SCHO 

SINGLE 8 

hEAO HH 8 

SINGLE B 

BEAD Hh & 

SINGLE 8 

FEAC HH 8 

SINGLE 8 

kEA0 HH 8 

SINGLE IL 

I-EdO Hh & 

SINGLE 8 

kEA0 Hh & 

SINGLE 8 

bEAO Hh 8 

SINGLE 8 

+EA0 Hh 8 

SIbGLE & 

hEAO HH 8 

SINGLE 8 

kEaO HH 8 

SINGLE 1L 

BEAD HH 0 

MARRIED 

ALL gCHD 

PARRIED 

ALL QCHO 

FARRIEO 

ALL sCn0 

MARRIED 

ALL SCHO 

PARRIED 

ALL SCHO 

MARRIED 

ALL SCHO 

PARRIEO 

ALL SCHO 

PARRIED 

ALL SCHO 

MARRIED 

ALL SCHO 

HARRIED 

ALL SCHO 

MLRRIED 

ALL SCHO 

  MEANS WITHOUT LIMIT 
The STATISTICS COMPUTED FOR TABLE 1 ARE SUBCLLSSIFIEO BY 

PtRCENTAGE CHA~GEIN TAX LIABILITY FOR TAX INCREASES AN0 TAX 

OkCHEASES ACCOROIhG TO TH� P�RCENTAGES SHOhrU IN TABLE 6.2.6. 

TABLE 41~2.6 PERCENTAGE CHANGE IN TAX 

LIABILITY BREAKPOINTS 

1 a0 2.0 1 eo 5.9 

2 2.0 4.0 a 5,O 10.0 

3 4eO 6.0 3 10.0 15.0 

5 1oeo 2s.o 5 20.0 25.0 

7 t30.0 40eO 

9 50.0 99.8 
TREASURY PERSCjNAL INOIVIDUAL INCOME TAX MODEL. 27 JUN 78 6-20 

THUS, CARD 121 PERMITS THE US�R TO CHANGE TkrLOkER LIMITS FGR THE 

TAX XEtCREASE BREAKPGINTS 2 THROUGH 6 TG SOME 3CTHER SET GF 

PERCEhTAGES. SLMILARLY, CAR0 NUM6ER 122 ALLCkS FOR THE TAX 

DECREASE BREAKPOINTS 2 THROUGH 10 TO 8E HODIFfED, IN 80th CAgES, 

THE PRCGRAH AUTOMATICALLY GENERAT�S UPPER LIMITS CONSISTENT hITh 

THE LOk�R LIMITS SUPPLIED BY THE USER, FIGURE 6.2.6 ILLUSTRATES 

THE FCRMAT FOR EACH OF THE3E CARDS, 

hH�RE B = ThE LONER LIMITS FOR THE PERCENTPG� CPANGE 

6REAhPOIhTS IN FS.1 FORPAT 

FIG, 6,206: TABLE 1 STUB CHAhGES CARC FCRMAT 

SINCE A VALUE OF Z FOR LOGIC SwXTCM NUWBER 11 ICN CARD 110 CAUSES 

BOTH OF THE ABOVE DATA CARDS TO Bk INPUTTED, CARDS 121 A40 LZZ 

MUST APPEAR AS A SET IN THE INPUT DECK EVEN IF OhLY ONE CATEGORY 

OF BREAKPOINTS IS TG BE MGOIFIED, 

THE STATISTICS COMPUTED FOR TABLE Z ARE SUBCLASSIFIED BY THE 

AUSULlrTE CHANGE IN TAX LIABILITY PCR PRESENTLY TAXABLE RETURNS 

THAT HA0 A TAX INCREAQE OR A TAX OECREASE AND FOR PRESEhfLY 

NUN-TAXABLE RETlrRNS THAT HAD A TAX INCREASE, THE 6REAKFOIhTS FOR 

THE DOLLAR AMOUNT OF A~SOLUTECHANGE UhOER EACH GF TclESE 

CATEGQRfES IS PRESENTED IN TA6bE 6.2.7, 
c i 

TREASURY PERSONAL IhOIVIDUAL INCOME TAX MODEL, 27 JUEC 78 6-21 

TABLE 6.2.7: A8SGLUTE CHANGE IN TAX LIABILITY BREAKPOINTS 

1 0. 50, 1 0, so. 1 0, 50, 

5 500, 1090, 5 500, 1000, 5 500. 1000, 

b 1090, ** *** b lQ00, ***** b 1000, ***** 

***** MEAN8 hITHOUT LIMIT 

THUS, CARO 123 PERMITS TH8 USER 1.0 CHANGE TkE LOkER LIMITS PCR 

BREAKPOINTS 2 THROUGH 6 IN THE CATEGORY OF PffFSENTLY TAXA8LE 

RETURNS HITH A TAX INCREASE TO SOME OTFER SET CF ABSOLUTE AMOUNTS, 

SIMILARLY, CAR08 124 AN0 125 ALLOH THE SAME TbING TO BE OGNE FOR 

THE CATEGORIES OF PRESENTLY TAXAeLE RETURNS WITH A TAX DECREASE 

AND PRESENTLY WN-TAXABLE RETURNS hITH A TAX IhCffEASE, 

RESPECTIVELY, A3 BEFORE, UPPER LIMITS CONSISTENT WITH TbE USER 

SUPPLIED LOWER LIMITS WILL BE AUTOMATICALLY GEhERATED BY TEE 

PROGRAP, 

THE FCRMAT FOR EACH OF TH�SE CARDS IS ICENTICAL TO THAT PRESENTED 

IN FIGURE 6.2.6 FOR CARC; NUMBER 121, EXCEPT FCR THE CARC NUMBER 

NHICH PUS1 BE 123, 124, OR 125. ALL THREE CAFOS IN fhI8 SECTION 

WILL RE INPUTTED BY THE PROGRAM AS A SET WHEN LOGIC 3hITCh NUMBkR 

12 ON CARO 110 hAS A VALUE OF 2, THEREFORE, ALL THREE CARDS MUST 

APP�AR A3 A GROUP IrU THE INPUT DECK EVEN IF ChLY ONE OF THE 

CATtGORIES OF BREAKPOINTS IS TO 8E MOOIFIED, 
TREASURY PERSONAL INOIVIOUAL INCOME TAX MOOEL, 27 JUN 78 6-22 

brilrllo CARD NCIIJBER 126: TABLE 7 STUB CHANGEE, 

THE STATISTICS COHPClTEO FOR TAelE 7 ARE SU9CLASSIFIED BY THE 

EFFLCTIJE TAX RATE BREAKPOINTS SHOWN IN TA8LE 6.208 BELCh. 

TABLE 6.2.4: EFFECTIVE TAX RATE BREAKPOINTS 

1 00 .O 

3 -5aO 10.0 

4 loa0 LSoO 

5 1500 20.0 

6 20.0 25.0 

7 25.0 130.0 

8 330.0 

9 135 0 40.0 

*35 0 

11 45.0 5000 ' 

1.3 55aO 60.9 

14 60.0 ***** 
c I 

TREASURY PERSCNAL INDIVIDUAL INCOME TAX MODEL, 27 JUN 78 6-23 

HENCE, THIS INPUT CARD ALLOWS THE USER TO MODIFY THE LahER LIMITS 

FOR THE EFFECTIVE TAX RATE: BREAKPOINTS 2 THRCLGH 1U, AS BEFORE, 

UPPER LIMITS CONSISTENT WITH TH� US�R SUPPCIEC LOWER LIFITS MILL 

El� GEhERATED 8Y THE PROGRAM, THIS INPUT CARD IS REQUIRED kHEN THE 

VALUE ASSIGNED TO LOGIC ShITCH NUM8ER 17 ON CARD 110 IS A 2, EACP 

EFFECTIbE TAX RATE eREAKPrjINT IS ENTEREO IN FS.1 FORMAT AS SHUkN 

IN FIG. 6.2.7. 

o&o6a&o66777777~7~78I 

12345678901~34567890I 

m~-oo~oomm~om~-mo~.o~ 

11 el2 Bt3 e14 I 

I 

WHERE 8 = THE LOWER LIPIT FOR TH� EFFECTIVE TAX RATE 

BREAKPOINT IN PERCENT 

FIG, 6.2.7: TA~LE7 STUB CHANGE CARD RCRMAT 
TREASMY PERSONAL INOIVIDUAL INCOME TAX Maw. 27 JUN 78 6-24 

I 

6.2.12. CARD NUMBER 127: AGI CLASS BREAKPOINTS, 

VARIOUS OUTPUT TABLES PRODUCED BY THE TAX NOEL ARE INOEXED ey THE 

AGI CLASS BREAKPOINTS SHOWN IN TABLE 6.2.9, 

TAbLE 6.2.9 ADJUSTED GROSS INCCPE CLASS 6REAKPOINTS 

(IN THOUSANOS OF DOLLARS) 

5 *** 0 20 *** - 0 0 - 81 

10 20 - 25 0 - 3 13 5 

15 25 - 130 3 - 5 s - 7 

20 30 - SO 5 - 7.5 7 - 10 

30 so = 75 - - - 7,5 10 10 

- 15 

so 75 100 10 -12e5 is 20 

- -

1 *** 

2 5 

33 1U 

U 15 

5 2U 

6 e30 

7 so 

8 100 

9 209 

*** MEANS WITWUT 

-

-

-

-

-

-

- 100 100 200 tZ.5 1s 20 50 

- a00 200 - 500 1s - 20 so '- 100 

- *** so0 - *** 20 *** 100 - *** 

LIMIT 

NUMUER 127 PERMITS THE U3ER TO REOEFINE THE LChER LIMIT3 FCR THE 

AGI CLASS eREAKPOINl3 2 THROUGH 9, THE PROGRAP WILL GEkERATE 

CONSISTENhT UPPEH LIMITS FROM THE USER SUPPLIED LOWER LIPITS. 

�ACh AGI CLASS 6REAKPOIluT MUST 6E EhTER�D IN F5.1 FORMAT AS SHOhrV 
TREASURY PEASOWL II~DIVIDUAL INCOME TAX MIXEL. 27 JU~7a 6-25 

IN FIG. 6,2.8, 

WH�RE 6 :THE LON�R LIPIT FOR TH� MI CLASS eREAKPOIhT 

IN THOUSAND3 OF DOLLARS 

FIG, betm8: AGI CLASS 8REAKPOIhT CARD PGRMAT 

THESE CARDS ARE REQUIRED kHEN LOGIC SNITCH WbBER 20 Uk CARD 110 

HA3 A VALUE OF Oh�. THE INFORMAT&CN SUPPLIED BY THESE CARDS MUST 

6E ENTERED ON THE INPUT CARD3 AS WOMN IN FIG, 6.2.9, 

NHERE hCODE A SIX DIGIT INTEGER NUMBER USED FCR OCDING 

THE RESULTS OF THE TAX HOCEL RUN. IF THE 

hUtfB�R IS GREATER THAN ZERC, THE TAX MODEL 

RESULTS kILL BE CODED, IF 1UCCDE EQUALS 
TREASURY PERSONAL IhrDIVIDUAL INCOME TAX MODEL, 27 JUN 78 6-26 

ZERO, THE TAX MODEL RESULTS hILL fvOT RE 

CODED 

RUN = A FCUR DIGIT NUM6ER THAT LhIQUELY IOENTIFIE3 

THE RESULTS OF THE TAX WOEL RUN FRCV OTHER 

TAX PODEL HUNS, THIS NUFfeER PUS1 BE LEFT 

JUSTIFIED. 

QUALIFIER = A 12 CHARACTER QUALIFIER FCR TM TAX HaoEL 

' RUN, SUCH A3 TAXARLE, NO~-TAXPBLEI ETC, 

TITLE :: A 30 CHARACTER TITLE WHICk LVILL REPLACE THE 

ON THE 311 CARD, IF LEFT BLANK# tFE TITLE 

TITLE FROM THE 1311 CARD NSLL BE USEO, 

DETAIL 1 = A 54 CHARACTER LINE WHICP CESCRIaES THE 

RESULTS UF ThE TAX MCDEL RUF( IN MORE DETAIL. 

DETAIL t = CONTINUATIOk OF OETAIL 1, 

FIG, 6,2,98 STORE TAX MODEL RESULTS CARD 

WHEIV TkESE CAROS ARE INCLUDED IN THE RUN STREAM, PRESELECTEO 

RESULTS FROM THE SUMMARY PAGES OF TABLES 1~ AM 5 WILL eE STORE0 

IN TRE COMPUTER. ThE STORED RESULTS CAFl BE ACCESSED BY THE TAX 

MODEL WBLEMAKER' WITHOUT THE; NEED OF THE TAX MODEL PRCGRAM, 

6,Z.lU. SUMMARY OF LOGIC 8 EOITING DATA CAAOS, 

THE PART 1 INPUT CAAOS SHOULD BE OROERED IN ThE SAME SEGUENCE AS 

THEY APPEAR IN THIS OCCUMENTATIONe THIS 13 ILLUSTRATED MORE 

CONCISELY IN FIG, 6.2,lO BELOW, 

IN ADDITION, FIG* 6eZ.11 ILLUSTRATES A PUNCWEO DECK OF PART 1 

INPUT CARDS THAT MIGHT BE EMPLOYED FOR A NGkTYPICAL RUh, 
TREASURY PEHSONAL IhDIVIDUPL INCOME TAX MOOEL. 27 JUN 78 6-27 
TREASURY PERSONAL INOIVIDUAL INCCPE TAX ~QOEL; 27 JUN 78 6-28 

+ m ~ ~ ~ o ~ ~ m ~ ~ ~ ~ m - - m - ~ ~ ~ ~ ~ - - ~ ~ 

I 11111~111122ZZ~~~~223~3333333~4444444U445S55~S55556 

112345470~01~14~6~8901~34~b~~~01~~4Sb~~~01~345670901~~

+ m m m ~ o m ~ m ~ ~ m ~ ~ m ~ - - 1 m ~ ~ ~ ~ ~ w ~ ~ ~ ~ ~ m o ~ ~ ~ m 

I SSAPPLk NYEAR=1975, NRkTPS000Ot NLtVz1978, SEhU 

1 1 1 0 0000001000221101~001 

I 1 1 iiiiiiiiti~iiiiili~i11111i111l1i11ii1i11~~~~~~~~

I 1 1 ~111111111111111111111111111111111111111111111111 

I 1 1 311~111111111111111111111111111111111111111111111 

I 1 1 4111111111111111111111111111111111111111111111111 

I 1 1 5111111111111 

I 1 1 4111111131111 

I 1 1 71111111111111111111111111111111111111111 

I 1 1 Bll~llllllllllllllllllllllltllllllllllllllllllllll 

I 1 i! 1 2.0 4e0 6mO 10.0 25eO 

I 1 2 2 SeO 1OeO 1SeO 2OeO 2SeO .Joe0 40.0 50.0 99e8 

I 1 z 3 50*0100*0250*0500e0999*9 

1 1 2 4 50*0100.0250,0500*0999*9 

I 1 2 5 50e0100.0~50*0500*0999*9 

I 1 2 4 5-0 7.5 1OeO 12e5 15.0 2OeO 25.0 30.0 '35.0 40 

I 1 2 7 5-0 10.0 15.0 20.0 30eO 50e0100e0~00eO 

1 1 3 0 9999 ALL RETURNS 

I 1 3 1THIS I3 Ah EXAMPLE TITLE, 

1 1 3 ZTHIS IS AN EXAMPLE RETAIL, 

I 1 3 3THI8 I3 A CONTINUATliOh OF THE EXAMPLE DETAIL. 

I 

----m------m-o-mmmam+ 

ooo60666o777777777781 

12345678901~~4567090I 

---.m1m-1mo---m=mm.m+ 

I SSAMPLE 

I 110 

111111111111 I 111 

111111111111 I 112 

111111111111 ~ 1 113 

111111111111 I 114 

I 115 

I lib 

I 117 

~11111111111 I 1113 

I 121 

I 122 

I 123 

I 124 

I 125 

e0 45.0 50.0 6OeO I 126 

1 127 

FIG, 6.2e12: INPUT CARD QECK FOR PART I 
THEASIJGY PERSONAL IkOIVIDUAL INCOME TAX MOOEL. 2.7 SUN 78 6-29 

6.3, TAX PARAMETER DATA CARDS, 

INTRODUCTION, 

THE TAX MODEL INITIALLY CREATES TkG ALTERNATILE TAX PLAK3, 

REFERRED TO AS PLAlv Y Ah0 PLAN Zt THAT ARE IDENTICAL IN EVERY 

ASP�CT TO THE EXISTING STANOAAD PLAN X, EACH SECTIOh GF THE INPUT 

OfiCK FCLLUIvfNC THE PLAN X AN0 PLAN 

TITLEY1 I3 DESIGNED TO ALTER ONE, 

OR MORE SECTIONS OF PLAk Xt YI OR 

PLACE AFTER PLAN Y AND PLAN 2 HAVE 

INPUT SECTION WILL MODIFY ONLY ONE 

Y TITLE CARDS (TITLEX AND 

SEVERAL, CR ALL SEGMEhTS OF ONE 

2, SINCE ThESE ALTERATIONS TAKE 

8EEh EQUATED TO PLAN X, EACH 

OF ThE PLAhS, 

EACH CF THE OATA CARDS IN THE FOLLONING SU83ECfICNS ARE, IN 

GtNERAL, INPUTTED VIA A 'NAMELIST' READ, HENCE, THE FGRMAT FOR 

THESE CARDS ARE 'FREE FORMAT' WITHIN THE RE3TRICTION3 OF A 

NAMELI3T READ, 

THO TITLE CARD3 ARE REQUIRED, ONE FOR PLAN X AN0 ONE FOR PLAN Ye 

(NO PROVISlQN IS MADE FGR A TITLE CARD FOR PLAh 2). THESE CARDS 

MUST BE thE FIRST Tho CARDS FOLLOhING THE PART 1 INPUT CARDS. 

FIG, 6.3.1 BELGh ILLUSTRATES TH� FGRMAT FOR EACH CARO, EACH TITLE 

MAY BE A MAXIMUM OF 60 ALPHANUMERIC CHAHACTERS, 

I 

I 

FIG, 6o3.18 TITLE CARD FCRMAT 
TREASURY PERSONAL IIUOIVIOUAL INCOt!E TAX MODEL, 27 JUN 78 6-30 

6,3*3, THE SCHANGE CARD. 

THE SCHANGE CARO COhVEYS TO THE TAX MGDEL hHICb TAX PLAkS kILL BE 

ChAhGkO AND HEhCEr MHlCh DATA CAR03 NILL FCLLCk, EACH GF THE 

VARIABLES NEWX, NEwYp AND NEW2 MAY BE SET TO CNE OF THE FQLLOING 

VALUE3 TO ACHIEVE THE DESIRED CHANGE, 

00, NO ChANGES 

+lt TAX PARAMETER CHANGES GNLY 

"21 TAX PARAMETER & TAX RATE CttAhCES 

TAX RATE CHANG�S OhCY 

FIG, 6.3.2 ILLUSTRATES AN �%AMPLE SCHAIUGE CARC WHERE PLAN X 13 NOT 

CHANGED, PLAN Y HA3 TAX PARAMETER AN0 TAX RATt CHANGEQi AND PLAN.Z 

I9 NOT CHANGED. TH13 CARD IS ALkAYS REQUIRED. 

IF ANY OF THE VARIABLES NEWX, NEkYi OR NEW2 FROM THE $CHANGE CAR0 

EQUAL 1 OR 21 A SPLNX, SPLNYi OR SPLNZ CARD kILL Bg R�QUIRED 

OEPENOING ON WHICH VARIAEILE IS SET TO 1 OR 2, USING THE EXAMPLE 

FROM FIG. 603,Zr NEkY hAS SET EQUAL TO 21 ThEFiEFORE, A SPLNY CAR0 

IS REQUIRED. IF NEkX HA0 ALSO BEEN SET EQUAL TO 1 OR 2, A %PLNX 

CARO kOUL0 BE REQUIRED AS WELL, 

THE GENERAL FORMAT FOR THE SPLNXi SPLNY, AND SPLNZ CAHOS IS 

ILLUSTRATE0 IN FIG, 6.30~3, IN THIS ILLUSTRATICN, THE * 
TREASURY PERSONAL IIUDIVIDLIAL INCOME TAX MOREL. 27 JUN 78 4-3 1 

MAY BE A X, Y, OR z OEPENOING m ~HICH PLAN IS TC CHANGED, THE 

VARIAljLES VNAMEI, VNAMEar ETC. MAY BE ANY CF THE VARIAeCES LISTED 

IN TA6LE 6.3.1, 

TA8LE 6.3.1: VARIheLE hAME3 FOR TkE %PL)uX 

SPLNY, AND SPLNZ CARDS 

OM*rLD* PRESENT LAW DEDUCTICNS AND GENERATED 

DEDUCTION CPTEGCRIES 

KD*rNT+ GENERATED DEDUCTION CATEGCRIES 

E*rE*CR EXEMPTIONS PNO EXEMPTbCN CREDITS 

DE*,OC*rCAP*, MISCELLANEOUS TAX PARAPETERS 

PIN* 

THE CCRRECT SPECIFICATION OF EACH GF THESE VAFiIAeLES WILL BE 

DESCRIefO IN THk SUBSECTIONS THAT FOLLOk, 
TREASURY PERSONAL INDIVIDUAL INCOME TAX MODEL. 27 Jlilv 78 6-32 

6w3.Sw PRESENT LAW DEDUCTION PARAMETERS. 

IN ORCER TO PERMIT THE INCLUSIOE(*CF FLOORS AhC CEILINGS ON 

INDIVIDUAL AND COMBINED DEDUCTION CATEGGRIES, THE TAX MCDEL 

INCORPCRATES IN THE STRUCTURE Of EACH PLAN A 'DEOUCTIaN MATRIX.' 

ThE DEDUCTION MATRIX ASSOCIATED WITH EACH PLbh MAY BE CHANGE0 A3 

DESIRED, HENCE, THE VARIAeLES DMX, DNYp AND OF2 AS WELL AS LOX, 

LOYr AN0 LO2 SPECIFY kHICH PLAN'S DEDUCTION MATRIX WILL UNDERGO 

HOOIFICATION. 

tH� 'DEDUCTION MATRIX' STORES DATA WHItb ALLCkS THE IMPCSIYICN OF 

THREE OIFFERENT KINDS OF FLOORS Ah0 CEILINGS FCR EACH OEDUCTION 

CATtGGRY SEPERAlELY BY TAX SCHEDULEo FI.GURC 6.3.4 ILLUSTRATES THE 

CONSTRUCTION OF THIS MATRIX, 

EACH SQUARE IN FIG. 6.304, WHICH REPRESENTS A SPECIFSC TAX PLAN 

AND TAX SCHEDULE, IS ACTUALLY A SUBMATRIX CGNSISTING OF TEN ROHS 

AND EIGHT COLUMNS. EACH ROW IN THE SUBMATRIX REPRESENTS ONE OF 

THE REDUCTION CAT�GQRIE$ SHOWN IN TABLE 6u3.2 kHILE EACH COLUMN 

REPRESENTS ONE OF ThREE DIFFERENT TYPES OF FLCCRS OR CEILINGS 

SHOWN IN TABLE 6w3d3. 
TREASURY PERSONAL INDIVIDUAL INCOME TAX MODEL. 27 JUN 70 

TABLE 6.3.2: ROh NUMBERS FOE EACH 

OEDUCTION CATEGORY 

1 CHARITABLE CCNTRIBLJTIONS 

z INTEREST kXPEhSE 

3 TAX EXPENSE 

4 MEDICINE AN0 ORUG EXPEIUSE 

5 MEDICAL AND OENTAL ExPEm 

6 MEOICAL INSURANCE PREMIUMS 

7 MISCELLANEOUS EXPEhSE 

0 GENERATED DEDUCTDCN CATECGRY A 

9 GEN�RATEO OEDUCTIGN CATEGORY 6 

10 PERCENTAGE STANDARD OEDUCTIUN 

6-32 

TO FACILITATE AN EXPLANATION OF HOk THESE PARAMETERS ARE EMPLOYED 

IN THE TAX MOOELt CONSIDER ANY ONE OF THE RChS /h THE SLJeMATRIX 

AND ILLUSTRATED IN PIGI 6,.3.5. 
1 V 

TREASURY 

I 

1 

2 

4 

5 

6 

7 

8 

PERSONAL INDIVIOUAL INCOME TAX MOOEL, 27 JbN 78 6~34 

TABLE 6w3cZ: COLUMN NUMBERS FOR EACH TYPE 

OF FLOOR OR CEILING 

FLOCiR, AN A8SOLUTE AMOUNT 

FLOOR, A PERCENTAGE OF AOJUSTEC GROSS IhCGME 

EXTRA AMOUNT PER EXEMPTION (TC BE ADD�U TO THE 

FLOOR RASE AMOUNT) 

CEXLING, AN A88ULUTf AMGUkT 

CEILING, A PERCENTAGE CF AOJUSTEG GRCSS INCCME 

CEILING, A BASE AMOUNT 

EXTRA AMOUNT PER EXEMPTION TG BE AOOEO TO THE 

CEILING BASE AMOUNT) 

IN FIG, 6,3,S, TH� SYMBCL 0 REPRESENTS AN AMCCkT AN0 ITS SbHSCRIPT 

REPHESENT8 THE COLUMN IT APPEAR8 IN, THE FIRST FOUR hUHRERQ 

COMPLETELY DEFINE THE FLOOR AND THE LAST FOUR COMPLETELY DEFINE 

THE CEILING, THUS8 THE FLOOR AND CEILING FOR A HETURN kITH Ah 

AOJUSTED GROSS INCOME OF Y AN0 N EXEMPTIONS IS CALCULATED AS 
THEASURY PERSONAL IIVOIVIOUAL INCOME TAX MGDEL, 27 JUN 78 6-35 

TH� ALLGWABLE OkDUCTION (ALLOW1 IS ThEN OERIVEC FROM THE 

ORIGIhINALLY REPGHTED OEDUCTIUNS (Dtl USING ThE FORMULA: 

(6*3*2) ALLOW = MIN( MAX( D'mFLOCR, 01, CEILING) 

THE STANDARD oEwctim IS CALCULATED IN A awLAR MANNER USING ITS 

FLOOR AND CEILING DATA AS: 

(6+3,4) STD = MIN( 05, (06/1OO)*MAX( (Y*FbOCR)r O)r 07+N*D8) 

ALL OF THE ABOVE FORMULA CORRESPOND TO THE CRCINARY NOTI~JNSCF 

COMPUTING ALLOhA6LE AND STANOARO OEOUCTIONS CChSTRAIk�ff BY FLUORS 

AND CEILINGS, 

TA~LE6.3.4 PRESENTS THE VALUES CURRENTLY ASSIGNED ra EACH 

CATEGCAY IN THE PLAN X SUBMATRICES, 

TU CHAHGE Ahy OF TH� yALU�S SHOWN IN TABLE 6.2.41 TkE USER 

SPECIFI�S THE--

VNAME(R0k NarCOL N0,SCHkOUl.E NU)SAMOUNT, 

ANYWHERE ON THE SPLbX, %PLNY, OR SPLNZ CARD, FOR EXAMPLE, SUPPOSE 

ThAT THE UJER kANTS TO CHANGE THE MINIMUM STAkOARO OEOUCTICh IN 

PLAN Y FROM SZrZOO TO %2,400 FOR SINGLES (SCHEDULE 1) AND FOR HEAC 

OF HOUSEhOLD(SCHEDULE 31, THIS IS ACCCMPLISWED BYDMY (101 3, 1)+24OOe I DMY (10d1,3)W+OOe I 

FURTHERMORE, SUPPGSE THAT THE USER ALSO WANTS TO CHANGE THE 

PERCEhTAGE RATE ON MEDICAL AND DENTAL EXPENSE IN PLAN Y FROM 3% 

TO 4% FOR JOINT RETURN$(SCHEDULE 21, THIS IS ACCOMPLISHED BY ALSC 

ENTERING GN THE SPLNY CARDANYTIME A ROW IS CHANGED, EXCEPT ROk 10, THE VARIABLE LOX, LDYi OFi 

LO2 MUST ALSG BE SET EQUAL TO 1, ThIS VARIABLE HAS ThE GCkERAL 

FORHI-
TREASLRY PERSONAL IhOIVIDUAL INCOME TAX MOOEL, 27 JljN 78 6-36 

TA8LE 6.3.48 STANDARO PLAh DEDUCTIGF( MATRiX 

1 1 1 

*I 2 I 

1 3 1 

1 4 1 

I f 1 

1 6 1 

1 7 1 

1 10 I 

I 

I l l 

1 2 1 

1 3 1 

1 4 1 

1 5 1 

1 6 1 

1 7 1 

I 10 I 

I I I 

I I I 

I I I 

I 1.01 I 

I '3oOI I 

I I I 

I I I 

I 0.0l~1200.01 

** SCHEDULE'3 

.. 

II 1,0+12 I 

II l.O+lt I 

II 1,0+12 I 

II 1,0+12 I 

II l,O+tZ I 

I I l,S+OZ I 

11 l,O+li! I 

II 3,2to3 I 

** 

.00,ll,Ot1tl 

.00*11,0+121 

,00.11,0+121 

,000 I1,0+12l 

.00,11.0+121 

,00,11,0+1tl 

,U0.11.0+12l 

.. 

I I I 

I I I 

I I I 

I 1.01 I 

I 3.01 I 

I I I 

I I I 

I 0,012200.01 

II 1,otit iioo.ii.o+i2i 

ll 1,0+lt 1100.11.0+121 

II l,O+lZ 1100.11.0+ltl 

II 1,Otlt 1100,11.0+t21 

ll 1,0+12 ll00.11.0+ltl 

II 1,5+0i! 110O~I1~0+121 

II 1,o+t2 1100,11.0+121 

II t,ZtQ? IlOO,ll.O+ltl .. 

1 CHARITABLE CONTRIBUTIONS 5 = MEDICAL CEhTAL EXPENSE 

c! 3 INTEREST EXPENSE 6 0 MEDICAL LIvSURANCE PREMIUMS 

3 3 TAX EXPENSE 7 MIJCELLPhE+CUS EXPENSE 

4 = PEDICINE 8 DRUG EXPEhSE 10 31 PERCENTAGE STANOARO OEOUCTION 

I 
TREASURY PERSOFtAL IkDIVIDIJAL INCOME TAX MODEL. 27 JUN 78 6-37 

VNAVE(ROW NO,3CHEOULE NO)=lp 

AND CAUSES THE SPECIFIED PARAMETER TO BE APPLIED IN THE 

CALCULATIGNS. FIG. 6.3.6 ILLUSTRATES THE SPLhY CARD FOR THE 

ChANGES DESCRIB�D CFBOVE. 

6.3.6, GENERATED DEDUCTION CATEGORIES. 

IN ORDER TO PERMIT THE APPLICATIOh OF FLOORS Ah0 CEILINGS TO 

GROUPS OF DEDUCTION CATEGORIES, THE USER MAY GENERATE CCHBINATIOh 

DEDUCTION CATEGORIES A3 PART OF THE ALTERNATIVE TAX PLAh(S1, TO 

RFINE THE COM8INATION DEDUCTION CATEGORIES CCRRECTLY AhD 

EFFLCIENTLY, A 'WORKING KFJOHLEDGE' OF HOW ThE DEDUCTION 

COMPUTATIONS AR� PERFORMED IS NECESSARY: 

A. THE REPCRTEO OEDUCTICNS FOR AN INDIVIDUAL TAX RETURN ARE 

RETRIvED FROM THE DATA FILE AND CONSTITUTE THE 'INITIAL' 

DEDUCTIONS, THE INITIAL DEDUCTIONS AR� SUBJECTED TO THE FLOORS 

AND CEILINGS OF THE DEDUCTION MATRIX IN THE HPhNER OESCRI6ED IN 

6.3.4 IN ORDER TO O8TAIN THE ALLOkABLE OEDUCTICNS, IF FUO FLOURS 

OR CEILINGS HAVE BEEN SPECIFIED BY THE USER CF THE PROGRAM# THEN 

IT 1s ASSUVED ThAT THE ALLOWABL� DEDUCTIONS ECUAL THE INITIAL 

DEDUCTION. 

6. THE INITIAL^ DEDUCTIONS ARE Noh DEFINED AS ThE ALLONAWE 

DEDUCTIONS FROW A AHOVEo 

C, ALL OR SOME OF THE 'INITIAL' DEDUCTIOFJS ARE SUMMED TIC GENERATE 

A COMBINATION DEDUCTION CATEGORY NHICH IS SUBJECTED TO ITS FLOOHS 

AND CEILINGS IN TH� MANNER DESCRIBED IN 6u3.4 TO OeTAIN THE 

ALLUWAeLE DEOUCTICN FOR THE COMBINATIGN CATEGCRY. 

0, IF WRE COMBINATION DEDUCTION CATEGORIES ARE TO BE GENERATED, 
TREASURY PERSGNAL IhOIVIDUAL INCOME TAX MOREL. 27 JUN 78 6-38 

THEN TPE 'INITIAL' DEDUCTIONS ARE REDEFINED AS TkE ALLOkABLE 

DED~JCTJONSFROM A PLUS THE ALLOlrAQLE OEGUCTIGhS FRON C AND THE 

COMPUTTATION IN C IS REPEATED, THUS, ThE ACLCkABLE DEDUCTIOk FOR 

A CUMBIhATIOh DEDUCTICN CATEGORY MAY CCkTRIeLTE TO THE hEXT AND 

ALL SUCCEEDING CCMBINATION DEDUCTICE( CATEGCAIES, 

E, AFTER ALL OF ThE ALLCNAELE 0EDLCTIO)US HAVE RkEN CCMPUTED, THEY 

ARE SUPMED TO O6TAIh TOTAC ITEMIZED OEDUCTLCNS, BUT IN A MANNER 

SUCH TbAT EACH ALLChABLE OEDUCTICN COMPUTED FRCM THE REPORTED 

DEDUCTION CQNTRI6UTES OkLY ONCE TO THI3 SUM. AS AN EXAMPLE, 

SUPPOSE THAT IN A AeOVE, rCE CALCULATED ALLOhAeLE DEDUCTIGN3 OF Alp 

A2, A3, AND A4 FOR THE REPORTED DEDUCTIONS iCF 01, 021 03, AN0 04 

RESPECTIVELY. FURThERHGRE, LET US ASSUME ThAT NE WANT A 

COMBINATION OEDbCTION SATEGORY DEFINED AS: 

(6.3.5) C1 = A1 + AZ 

IN C AeoVE, kE WOULD THEN CALCULATE THE ALLOHABLE DEDUCTION At* 

FOR C1. LET US NOW DEFINE A SECOND CQM8fNATLCN OEDUCTIOh CATEGORY 

AS: 

AND CALCULATE ITS 4LLOkABLE D�DUCTION AZ* Ih C. IF C1 Ah0 C2 &ERE 

OUR ONLY COMBINATION DEOUCTION CATEGORIES, TH� TOTAL XTEPfZED 

DEDUCTIONS WOULD BE-­

(6,3,7) TOTAL ITEMIZED D�DUCTIONS = A2* i A4 

AT PRFSENT, NO MORE THAh 2 COMBINATION DEDUCTICN CATEGORIES ARE 

PtRMITTED, 

TO SPECIFY A COMBINATION DEDUCTION CATEGORY ThE USER MUST INSERT 

.ON THE SPLhX, SPLNYi CR SPLNZ CAROMKD*(l,N)gNEW CATEGORY NO. 8 OR 91 

NO OF EXISTING CATEGORIES TO BE CGWBIkED, 

ROW NO OF 1ST EXISTING CATEGORY, 

0 

Raw lU0 OF NTh EXISTING CATEGCRY, 

ROh NO OF 7;H EXISTING CATEPORYI 

NT*=k, 

WHERE *PX FOR PLAN XI OY FOR PLAN Yg SZ PCR PLAN Z 

NsTHE NUMBER CF GENERATED DEDUCTION CATEGORIES 

TO 6E ADOEO, HAXIMUM OF 2. 
! , 

. TREASURY PERSONAL INDIVIDUAL INCOHE TAX MODEL, 27 JUN 78 6-39 

RETURIUS(2) IN PLAN Y, TO ACCOMPLI3H THIS HE kCULO INSERT Oh THE 

SPLNY CARD.-

AS k�LL AS-. 

43 SHC" ABOVEt ThE USER MUST ALSG SPECIFY THE CORRESPCNOING 

FLOORS AND CEILINGS Ih THE OEDUCTICN MATRIX, FIG, 603.7 

ILLUSTRATES THE %PLhY CAR0 FOR THIS EXAMPLE, 

FIG, 6u307: THE SPLhy CARD WITH GENERATED DEDUCTIOh CHAhGES 

6,3,7, EXEMPTION ALLOkANCES 8 CREDITS, 

IN OROER TO ALTER THE EXEMPTION ALLONANCES Ah0 TAX CREDITS 

ASSIGIvEO TO EACH PLAN, THE VAHIAaLE3 EX, EY, CR �2 Ah0 TbE 

VARIABLES EXCR, EYCR, OR EZCR ARE INSERTED Ch THE SPLNX, SPLNYi OR 

SPLNZ CARD AS REQUIRED, EACH OF THESE VARIABLES AND THEIR DEFAULT 

VALUES ARE DESCRIBED aaow, 

�*(1) = THE DOLLAR ALLOWANCE FOR TAXPAYER 

EXEMPTIONS 

�*(2) = THk DOLLAR ALLUkANCE FOR AGED 

EXEMPTIONS 

E*C3) t TH� DOLLAR ALLOWANCE FOR BLIND 

EXEMPTIOhS 

E*(4) = THE DOLLAR ALLCIHANCE FOR OEPENCEhT 

EXEMPTIOIvS 

($750) 

($7501 

(3750) 

($7501 
TREASURY PERSONAL IIvOIVIDUAL INCOME TAX MOOEL, 27 JUN 78 6-40 

E*CR(l) = THE OOLLAR TAX CREDIT FOR TAXPAYER 

EXEMPTIONS c 535 1 

E*CR(Z) o THE OOLLAR TAX CREDIT FOR AGED 

EXEMPTIONS ($35)

E*CFi(3) :: THE QCLLAR TAX CREDIT FOR BLIND 

EXfiMPTION8 ($351

E*CR(4). = THt OOLLAR TAX CREDIT FCT DEPEfvOEhT 

EXEMPTIONS (5351 

IF THE U8kR kANT3 TO CHANGE THE TAXPAYER EXEMPTICIU PC Se50 AN0 THE 

DEP�NGEhT TAX CREDIT TO 545 FOR PLAN YI HE HCLrLD INSERT CN TH� 

SPLNY CARO--

EV(ll=8SOar EYCR(4)~45et 

IF ThESE ChANGES ARE TO RE MAOE IN CONJUNCTGCk kITH THE OEDUCfIQh 

CHANGE3 OF SECTION 6.1.51 THEN THE SPLNY CARD kObLD APPEAR AS 

ILLUSTRATED IN FIG, 6,3.8, 

FIG, 6u3.8: THE SPLNY CARD hITh GEDUCTZGN, EXEMPTION, 

AN0 EXEMPTION CREDIT CHANGE3 

6,3,8. MISCELLANEOUS TAX PARAMETERS, 

THERE ARE THIRTY MISCELLANEOUS TAX PARAMETERS REMAINING IN Tk� TAX 

STRUCTURE GF EACH PLAN IN THE MOOEL. EACH CF THE HISCELLAkEOUS 

TAX PARIP�TERS IN A TAX PLAN ARE fNITIALLY TPE SAME AS TFOSE IN 

ThE STAEtOARD PLAN SHOkN IN TABLE 6,,3,5 BUT MAY BE MOOIFIEO BY THE 

USER, 

TO MCCIFY ONE OF THE PARAMETERS IN TAaLE 6~3t5, THE USER ENT�RS Oh 

THE SPLNXt SPLkYt OR SPLNZ CARD=-
TREASURY PEHSG~AL I~UOIVIOUAL INCOME TAX MacEL, 27 JUN 78 6-4 1 

WHERE THE *sX FGR PLAN XI Y FOR .PLAN Yt OR 2 FCH PLAh 2, 

CONTINUING NITH 1F.E EXAMPLE FROM THE PREVIOUS SECTION# SUPPOSE 

THAT TPE USER kAhTs TC CHANGE THE CHILD CARE CREDIT TG 25% AND THE 

MAXIMUP EARNED INCCME CPEOIT TO ssoo FaR PLA~Y. THIS IS ACHIEVEO 

BY ThE DATA CAROS ShOkN Ih FIG, 6u3.9, 

FIG. 6,309: THE SPLNY CAAO kITH OEDUCTION, EXEMPTION, 

EXEMPTION CR�OIT AN0 MISCELLANEOUS TAX 

PARAMETER CHANGES 

THE USER SHOULD NOTE THAT PERCENTAGES ARE ENTERED AS REAL NUvBERSp 

THAT IS 0.25 NOT 25.0 FOR 2SXo 
TABLE 6.3.5: CISCELLANEOUS TAX PARAPETERS 

INITIAL 

VAfiIA6l.E PARAMETER DESCRIPTIOh VALUE 

NAME 

PIh*(21 MAXIMUM RATE ON EARNED IhCCPEp 

PERCENTAGE 50% 

PIh*(31 D�OtJCTIGNS INCLUSION, PERCEhTAGE 100% 

P1N*(UI EXEMPTIONS INCLUSION, PERCEhTAGE 100% 

Plk*(Sl FLOOR ON PREFERENCE REDUCIhG 

EARNED INCOMt SO 

PIN*(bI MAXIMUM AHOUNT OF FULLY SHELTERED 

ALTERhATIVE CAPITAL GAINS SSOr000 

PIN*(71 RATE CN UNSHELTEREO ALTERNATIVE 

CAPITAL GAINS 835% 

PIN*(81 MINIMUM TAX RiTE ON PAEFEREhCES 15% 

PIh*(91 FLOOR ON PREFERENCES FOR ThE 

MINIMUM TAX s10,000 

PIN*(lOI M�DICAL INSURANCE PREMIUMS 

O�DUCTION, PERCENTAGE SO% 

PIN*(11) EXCESS ITEMIZED OEOUCTIONS CVER 

AGI, PERCENTAGE 60% 

PIN* (121 REGULAR TAX TO 8GFFSET MINIMUP 

TAX, PERCENTAGE 50% 

PIN* ( 13) OPTIONAL TAXABLE INCCME CRECIT, 

PERCEhTAGE 2% 

PIh*(141 CEILING ON OPTIONAL TAXA8I.E 

INCOME CREDIT 39000 
TRE93URY PERSONAL 

PXN*tlS) 

PIN*( 16) 

PIN*(17) 

PIN*(l6) 

PIN*(19) 

PIN*(ZO) 

PIN*(21) 

PIk*(22) 

PINtC231 

PIN*(24) 

P Ih* (251 

PIh*(261 

PIN*(271 

PIN*(Z8) 

INDIVIDUAL INCOME TAX MOOEL. 27 31iN 78 6-43 

CHILO CAR& CREOIT, PERCENTAGE 

CHILD CARE CREDIT@ AMOUNT - P�R OLPENOENT 

CHILD CARE CREOITr MAXIHlJP 

AMOUNT FOR ALL OEPENOENTS 

EARNEC INCOME CREDITr PERCEhT 

EARNEO INCOME CREDIT, MAXIMLW 

AMOUNT OF CREDIT 

EARNED INCOME CREDIT, LEVEL 

OF PGI INHERE PHASEOUT BECIhQ 

LINITATION ON INVESTMENT IhTEREST 

20% 

SZrOOO 

54tOOO 

10% 

S400 

S4rQ00 

EXPENSE 310,000

ELDERLY CREDIT: PAXIMUM APOLhT 

CREDIT, SINGLE RETURNS 

ELDERLY CREDIT: MAXIMUM AWGIJhT 

CREDIT, JOINT RETURNS 

ELDERLY CHEOITt REDUCTION BASED 

AGI, PERCENTAGE 

3aTa 

s2r.500 

$87. 

93r750 

Oh 

50% 

ELDERLY CREDIT8 REDUCTION BASED ON AGI 

LEVEL, SINGLE RETURNS SfrSOO 

ELDERLY CREDITS REDUCTIOh BASED Oh AGI. 

LEVEL, JOINT RETURNS s10~000 

ELDERLY CREDIT8 RATE GF CRECIT 1sx 

ELDERLY CREDIT! REDUCTICN BASED ON �11 

AGE < 62 8900 
I 

TREASURY PERSONAL INDIVIDUAL. INCOME TAX MODEL, 27 JbN 78 6-44 

TABLE 6,.3,5: MISCELLANEOUS TAX PARAPETERS 

PIN*(291 �LD�RLY CREDIT8 RtDUCTfON ePSED Oh �1, 

62 (3 AGE < 72 SlrtOO 

PIh*(30) ELDERLY CREDIT: REDUCTION BASED ON �1, 

E1 > PIh(32) $1~450 

PIN*(311 ELDERLY CREDIT: REDUCTION RPSED ON �1, 

LONER LIMIT Slr200 

PIN* (321 ELDkRLY CREDIT# REDUCTION BASED ON �1, 

UPPER LIMIT 91r700 

DE*(lI DIVIDEND EXCLUSOGNr SCHEDOLE 1 $100 

DE*(21 DIVIOkNO tXCLUSLON, SCHEDULE 2 9200 

0�*(3) DIVIDEND EXCLUSION, SCHEDULE .3 3100 

DC*(l) MAXIMUM ABSOLUTE DIVIDEND CREDIT 0 

DC*(Z) MAXIMUM DIVIOE~OCREDIT AS A 

PERCEhT OF DIVIDENOS 0% 

DC+W MAXIMUM DIVIDENO CREDIT AS A 

PERCENT OF TAXABLk INCOME OX 

CAP*(lI CAPITAL GAINS EXCLUSCON, 

PERCEkfAGE 50%. 

CAP*(2) MAXIMUM CAPITAL GAINS TAX RITE, 

PERCEhTAGE 25% 

CAP*(31 MAXIMCiM YkARLY CAPITAL LOSS S3r000 

CAP*(41 LOSS OFFSET CONVEhTIGhr 13 FULL 

OFFSET, 00 PARTIAL GFFSET 0 
THEASURY PERSONAL INDIVIDOAL INCOME TAX MOOEL, 27 JUN 78 6-45 

I 

6.4, TAX RATES OAfA CAROS. 

b04,1, THE SRATES DATA CARD, 

THE TAX SCHEDULES ASSIGNED TO THE ALTERNATIVE TAX PLAN(S) ARE 

INITIALLY THCSE aF THE STANDARD PLAN, ANY TAX SCHEDULE ASSGCIATEC 

MITH ANY OF THE THREE PLANS MAY 6� REDEFINEC 8Y EMPLUYIhG ThE 

SRATES CAHO AND 4OOlTIONAL DATA CARO$a TkE USER MAY RECEFINE A 

TAX SCFEOULE 8Y SPECIFYING THE SChEDULE THAT 19 TO BE ChANGEO AND 

ThE OPTION THAT IS TO BE USED TO ACCOMPLISH TI.� TAX RATE ChANGES. 

THIS CARD IS REQUIRED WHEh NEWX, hEWYi OR NERZ Uh ThE SCPANGE CARC 

IS SET EQUAL TQ 2 OR 3. THE PARTICULARS OF TbIS CARD ARE 

ILLUSTRATED IN FIG, 6.401 BELOh, 

+--

I 1 FOR SCHEDULE 1: SINGLE PERSON AETURkS 

I 2 FOR SCHEDULE 2: PARRIEG FILING JCINT 

I RETURNS# CERTAIN wIOCh9r AND HARRIED 

I PERSONS FILING SEPERATE RETURN3 

NSC (APPLIFLO AT 112 THE IhlERUAL3) 

I 3 FOR SCHEDULE 3: ~NMARRIED OR LEGALLY 

I SEPERATED HEAO OF HOUSEHGLD

+--

t--

I 0 NO MORE RATE CHANGES 

I 1 CHANGE RATES BY VARICUS METhOOS 

NN :C 2 AUTOMATIC GENERATICN IGF JQINT(2) RATES 

I ANOIOR HEAD OF HGUSEhCLCC31 RATES: CLD VERo 

I 3 AUTOMATIC GENERATION CF SINGLE(11 RATES 

I FROM JOINT(Z) RATES: hkh VER, +WW 

FIG. 604.1: THE SRATES CARD FORMAT 
TREASURY PERSONAL INDIVIDUAL INCCkE TAX MODEL. 27 JUN 78 6-46 

6.11.1.1. OPTIONZO: NO MORE RATE CHAtuGES. 

A $HATES CARD IS REQUIRED FOR EACH TAX SCHEOULE THAT IS TO BE 

CHANGED. IN AOOITLON, ONE MORE SRATES CAR0 MCi3T BE INCLUDED IN 

THE INPUT STREAM FOLLOkINE TH� OThER SRATES CARD3 Ti2 INDICATE THAT 

ALL OF THE RATE CHANGES HAVE 6EEN COMPLETED FCA THE CURREkT PLAN. 

6,4,1*2. OPTIGN=l! METkOOS OF CHANGING RATES. 

THE OPTICNsl PARAMETER ALLOWS THE USER 79 EMPLCY ONE OR NORE OF 

SIX DIFFERENT MEfhGDS TI! CHANGE THE TAX RATE SChEOULES. ALTHOUGH 

THESE ARE EASY TO USE, �ACH OF THE METHODS kILL 8E OESCHIBEQ IN 

THE NEXT SUBSECTIOhr 

6.4.1.~1. OPTIONtZ: AUTC GENERATION, OLD VERSION. 

AUTOHATIC GENERATION GF SCHEOULE Z MILL BE CREATED BY OCUeLIrJG THE 

WIOTH CF THE lNCOME BREAKPOINTS I&SCHEDULE 1. AUTOMATIC 

GENERATICN OF SCHEDULE 14 13 ACCOMFLLSHEO BY CCNSTRUCTING INCOME 

6REAKPOINTS WHICH ARE MIDWAY HETWEEN SCHEDULES 1 ANU 2. THE ONLY 

LIMITATION ENCGUNTEREO HERE IS THAT ThE APPRGPRIATE SChEDULE(81 

NECESSARY FOR ThE GENERATIO~VBE SPECIfIED B�FCRE THE REQUEST FOH 

AUTGMATIC GENERATION. FCR EXAMPLE, IF A NEW SCHEDULE 1 IS TO BE 

SPECIFIEO AND SCHtOULE 2 TO BE GENERATE0 FRCM IT8 THEN THE 

SCHEDULE 1 SPECIFICATION MUST APPEAR Ik THE DATA DECK B�FORE THE 

GkNkRATlOtU HEQlrEST FOR SChEDULE 2. 

6.4.1.4. OPTIONa3: AUTG GENERATION, NEk VERSEON.. 

WHEN OPTION >2 IS ELECTED8 THE TAX POOEL PROGRAM kILL GENERATE THE 

SINGLE RETURN RATE SCHEOULE FROM THE JGINT RETURF( RATE SCHEDULE BY 

EMPLOYING VARICUS ASSUMPTIONS REGAROING THE RELATIOhSHIP eETwEEN 

THE TkG RATE SChEOULES. AN ERROR CHECK WILL CAUSE THE PRCGRAM TO 

PRINTCUT AN ERROR MESSAGE AN0 TERMINATE IF tHI3 OPTPON IS 

REQUESTED AND SCHO DOES NOT EQUAL TO 1. 
1 I 

TREASURY PERSONAL IF~DIVIOUPL INCOME TAX MODEL. 27 JUN 78 6-47 

6.4.2, SIX METhOCS TO CHANGE RATE SCHEDULES. 

THE EXISTING TAX RATE SCHEDULES THAT ARE INITIALIZED FOR PLAN X, 

YI AND 2 ARE PRESENTED IN TABLE 6.4,2, THESE ARE THE TAX BRACKETS 

AND TAX RATES THAT THE FOLLOWING METHODS OPERATE ON. 

NkEN CPTIONtl Oh THE SRATES CARD, THE TA% MCEL PROGRAM WILL 

REQUIRE THAT THE USER ENTER IN FREE FORPAT A h’UMBER FffOM 1 TO 6 A8 

THE NEXT OATA CARO, THIS NUk8ER REPRESENTS TFE METWO GF CHANG� 

AS 8HOkt-d IN TAHLE 6,4,1. 

TABLE 6.401: METHODS EMPLOYED TO ChhhGE THE 

MARGINAL TAX RATE SCH�DLLES 

1 FLAT RATE 

d TRU~CATERATE3 AT X% 

J AUJUST ALL RATES UP OR OCWN BY X PERCEhfAGE 

POINTS 

4 AOJUST ALL RATES UP OR OONN BY X% 

5 REPLACE THE EXISTING RATE SCHEDULE kITH A NEk 

RATE SCHEDULE 

b ).(ODIFVt OELETEt OR INSERT NEh BRACKET3t RATES 

IN ThE EXI3TIhG RATE SCHEDULE 
TREASURY PERSONAL IhOIVIOUAL INCOME TAX MOO�L, 27 JLN 78 6-48 

TAGLE 6.4.2: INCCME 6REAKPOINTS AN0 MAAGJhAL TAX 

.RATES BY SCHEDULE 

0, - 10ooe 

1000, - aooo, 

2000, .I 13OOOm 

3000, - 4OUom 

4000, - 8000, 

8000, - 1z000, 

LZOOO, - 16000, 

16000. - aOOOOe 

20000. - 24000, 

24000. - 28000, 

28O00. 0 32000, 

32000. - 36000, 

36000, - 40000, 

UOOOOm 0 440001 

44000, - 52000, 

52000, - 64000, 

64000, - 76000, 

76000, 88000, 

880001 - lOOOOO* 

lO0000. - LtOO9Om 

120000m - 140000m 

140000, - 160000, 

t60000, - raoooo, 

180000, - 200000, 

zooooo, 8 OVER 
I 

THEASbRY PERSONAL INDIVIDUAL INCOME TAX MOOEL. 27 JUN 76 4-49 

TABLE 6,4.2: INCOME UREAKPCINTQ bhO MARGIBAL 

TAX RATk3 BY SCHEDULE 

0. - 1000. 

1oooe = czooo, 

2000, - 4000 

4000. - 6000. 

6000. - 8000 , 8000. = 1o000. 

10000. - 12000. 

12000. = 14000, 

14000. - 16000. 

16000. 0 18000, 

l800Oe - 2llo0oe 

20000, - 2zoo0, 

220001 24000, 

24000e - 26000. 

26000e - 28000. 

Z800Oe - 32090. 

32000, 36000. 

36000, - 38000 1 

380UOe 4O00Oe 

40000. 44000 

440000 - 50000. 

50000, 0 s2ooo. 

52000, - 64000. 

64000. - 70000. 

70000e - 76000, 

76000. - 80000, 

80000. - 88000, 

88000, - ooooo, 

100000. - 120000. 66 

120000. 140000. 67 e 

140000. - 160000e 68, 

160000, - 180000o 69 e 

180000. 8 OVER 70, 
.L I 

TREASURY PERSONAL INDIVIDUAL INCGME TAX MOOEL, 27 JUN 78 6-SO 

6.4.2,l. METHOD 1:fLAT RATES, 

IF THE USER WISHES TO IhSTITblTE A FLAT RATE FCR SCHEDULE 1 ' 

O(SfNGLE1 OF 50x1 HE WOULD ENTER THE CARDS SMhN IN FIG. 6,4,2. 

6,4.2.2, METHOD ZtTRUNCATE RATES. 

IF THE USER WANT3 TO TRUNCATE THE RATES FOR SChECUL� 1 (8INGLE) AT 

bo%, HE WOULD ENfTER THE CAR09 3HOLUN IN FIG, 6.4~3. 

IF ThE USER WANT3 TO DECREASE ALL THE MARGIlvAL RATES ON SCk�OULE 

1($INGLE) BY 2 PERCENTAGE POINTS, HE WCULD ENTER THE CARD3 SHOWN 

IN FIG. 6.4.4, 
1 

THEASURY PERSGNAL IhOI\rIDlrAL INCOME TAX MODEL, 27 JUN 78 6=5 1 

FIG, 6,4.4: DATA CARDS FOR ADJUSTING RATES BY 

PERCENTAGE POIRTS 

6,Um2,4, MEthCO 4:ADJUST 8Y A PENCENTAGE FACTCR, 

IF THE USER WISHES TO INCREASE THE MARGINAL RATES FCR SCHEDULE 

l(SINGLES1 BY 10 PERCENT FOR ALL Th� RATES, HE WOULD EhTER THE 

CARUS 3HOkN IN FIG, 6,4,5. 

FIG, 6.4.5: DATA CARDS FOR ADJUSTING RATES BY A 

PERCENTAGE FACTOR 

6,Um2,5. METhaD 5:HEPLACEMENT UF ThE RATE SCbEDULE, 

TO HEPLACE ALL THE RATESIN A GIVEN SChEDULE hITh A NEW SET OF TAX 

RATES, THE USER MUST ENTER A '5' AS TH� FIRST DATA CARD FOLLGhING 

THE %RATES CARD. EACH DATA CARD THAT FOLLGkS CONTAINS-­

A BRACKET IN $'SI A TAX RATE IN Xr AN INOICPTOR, 

WHERE THE INDICATOR IS AN INTEGER ZERO(O1 FCR ALL CARDS EXCEPT Tk� 

LAST CARD hHICh CONTAINS A MINUS GNk(-l1, THE BRACKETS AND RATE3 

' ARE Rkb~NUMBERS. GNE CARD IS REOUIRtD FOR EACh NEW BRACKET ANU 

TAX RATE, THt CARDS MAY BE ARRANGED IN ANY ORDER AND DUPLICATE 
TREASUffY PERSONAL IhOIVIDUAL INCOME TAX MGDEL, 27 JUN 78 6-52 

ENTHIES, IF ANY, HILL BE OMITTED FROM ThE SCHECUL&e THE LAST CARD 

MUST &E--

O*?O*r-lr 

TCj lNDICATE THAT ALL OF THE ENTRIES THAT' CChtSTITCTE THE RATE 

SCHEDQLE HAVE BEEN ENTEHEO. 

AS AN EXAMPLE, suppas� THAT THE USER MAUS rc REPLACE SCIIECULE 

l(S1NGl.E) WITH THE SCHEOULE ZIJOINTI TAX RATES. THE CARDS SHOWN 

IN FIG. 6*4,6 NULO ACCCMPLISH THIS OBJECTI\E. 
TREASLJGY PEHSONAL 1)UOIVIOUAL INCOME TAX MODEL, 127 JbN 78 6-52 

6*4*2,6, METHOD 6:INSEATr DELETE, OR MODIFY THE RATES. 

MAIUY TIPES ITIS DESIRABLE TO INSERT8 DELETE, CR PUDIFY A TAX 

BRACKET OH HATE vtXTkOUT REPLACING ThE ENTIRE TAX SCHEOIILE. IF TkE 

USEH SPtCIFIE9 A '6' ON THE FIRST DATA CARD FCLLChING THE $RATES 

CAROp TH�N LNSERTIOhS, DELETIONSI AND M001FICATP0hS kfLL BE 

ACCEPTED IN ANY OROCR, 

EACH CAHO FGLLOhING THE HETHOO '6' CARD WILL GCNTAIN=­

A BRACKET IN $'St A TAX RATE IN XI AN INOICATOR, 

TABLE 6,4,Z ILLUSTRATES HOW THE DATA MUST E� EhTEHED TU ACHIEVE 

I~SERTION9t OELETIOhS, AND MOOIFICATICNS, Ih TABLE 6*40,:, B 

RkFtRS TO AN tXISTfkG TAX BRACKET Ah0 8* REFEGS TO A NEh TAX 

BRACKtT, SIMILARILLYp R REFERS TO AN EXISTIhG TAX RATE AN0 R* 

REFERS TO A NEW TAX RATE, 

DELETE BrRrir 

REPLACE 

SPLIT A BRACKET BrR*rOr 

8*rR** r 0, 

B=GLD BRACKET B*=NEW BRACKET 

RrOLO RATi R*oNfw RATE 

R**rNEw RATE hOT EQUAL TO R* 
I 

TREASURY PERSONAL INDIVIDUAL INCOME TAX MODEL. 27 JUN 78 6-54 

48 AN EXAMPLE, SUPPCSE THAT THE USER hANTS TC PODIFY SCHEDULE 

l(S1NGLE) BY DELETING THE 1500~~000BRACKET, eY CHANGIhG THE RATE 

ON THE 2000-4000 dRACKET FROM 19% TO 14x1 AN0 BY SPLITTIhG THE 

4000-6000 BRACKET IIvTC! 4000-5000 AT 20% Ah0 5000-6000 AT 22%. THE 

CARDS ShOkN IN FIG. 6.407 WILL ACHIEVE THE DESIRED RESULTS. 

FIG. 6.4.73 OATA CAR09 FOR MCDIFYING RATES BY 

INSERTLONI OELETIONr g WDIFYING 

THE USER SHOULD NCT� THAT THE LAST CARDO*tO.?-l? 

IS REQUIRED TO TERMINATE THE CHAIvGES TO THE SPECIFIED RATE 

SCHEDULE, 

6,4,3, STACKING OPTIONS AN0 METHODS. 

EACH GF THE OPTION3 AND METhOOS CAN BE STACKEC TC EASILY ACHIEVE A 

SET OF COflPLEX CHANGES TO THE RATE SCHEDULES. FGR EXAMPLE, A 

PROPCSAL REQUOIRES THAT­

(AI JCINT: DELETE THE 2000-3000 BRACKET 

SPLIT THE U4000-52000 8RACKET LIvfiC 

44000-48000 AT SOX 

uaooo-52000 AT six 

(8) ACJUST THE JOINT SCHEDULE RATES BY 10% 

TG REFLECT INFLATICN 

(C) CREATE A SUITABLE SINGLE SCHECLILE FROM TbE JOINT 

SCHEDULE 

(0) CREATE A SUITABLE HEAD OF HOUSEHOLD SCHECULE 

FROM THE SINGLE AND JOINT SchEwLEa 
TREASURY PERSChAL IkDIVIDUAL' INCOME TAX MOOEL, 27~3UN78 6-55 

ThESE ChANGES AWE EASILY ACHIEVED BY THE CARDS ILLUSTRATED IN FIG, 

6.4e8, 

FIG, 6,4,8: EXAMPLE DATA CAAOS FGR STACKIhG METHGCS 

AN0 CPTIONS 
TREASlrRY PERSONAL INDIVIDUAL INCOHE TAX MODEL, 27 JUN 78 6-56 

a 

THE TPX PARAMETER Ah0 TAX RATES DATA CAROS PUST BE IhSERTEO 

FOLLOhIhG ThE GkNERAL LCGlC AND EDITING DATA CAACS Ik THE OROER 

ILLUSTRATED Ih FIG, 6,409, MURE SPEClFIChLLY, THE OROER IS 

CONOITIONAL A3 SHOkN I N

TABLE 6.4.4: 

YITLEX 

TITLEV 

$CHANGE 

SPLNX 

$RATES 

SPLNY 

$RATES 

SPLNZ 

$RATES 

TABLE 6.4.4, 

THE TAX PARAMETER AND TAN RITE OAPA 

CAR03 AND THE CONOIfIOIv PCR THEIR 

INCLUSION IN THE IhPUf DATA DECK 

IN ADDITION, FIG, 6,4,10 ILLU3TRATES A PUNCkEO OECK CF DATA INPUT 

CAR03 FOR NEWYZZ, THAT I3 TAX PARAMETER AND TAX RATE CHANGES TO 

PLAN Ye 
TREASURY PERSONAL INDIVIOUAL INCOME TAX MOOEL, 27 JUN 78 6-57 
J 

t , 

FIG. 6.409: DECK CONSTRUCTIOh FOR TAX PARAMETER AkO 

TAX RATE INPUT CARDS 
TREASURY PERSONAL IkDIVIDUAL XNCOME TAX MGDEL, 27 JUN 78 6-59 
t 1 

FIGm 6,4,10: IhPUT CARD DECK FOR PARTS 2 Ab0 ,Sm 
, i 

TREASURY PERSONAL IFtOIVIDUAL INCOME TAX MODEL, 27 JUN 78 6-6 1 

6.5, CONTROL STREAM FOR A TAX MaOEL RUN, 

IN ORDER TO MAKE A TAX MODEL HUN, $OM� FILE WANIPULATICh IS 

REQUIRED PRlOA TO THE ACTUAL INPUT OF THE OATA CARDS. THE BULK CF 

THE FILE MANIPULATION HAS BEEN PREPARED IN ADkANCE SC TbPT ONLY 

THE CONTROL STATEMENTS ShOWN IN FIG, 6,5.1 ARE NEEO�D TG PRODUCE P 

RUN FROM DATA CARDS, THE USER SHGULO PREPARE 4JNE CARO FOR EACH 

CONTRCL SlATEMEhT BEGINNING IN COLUMN 1 ON TPE CARD, THE 

INFURMATION PRGCEEDkD BY A PERIOO CN THE RIGHT HANO SIDE GF EACH 

CUNTRGL STATEMENTI NEED NOT 6E IFtCLUOEO ON ThE CARO SINCE ThIS 

INFURMATION IS A COMMENT AND THEREFORE, DOE$ BOT PRaoucE ANY 

ACTIQhS BY TH� COMPUTER SYSTEM, 

THE NUMB�R OF CARD3 NECESSARY FOR HAKIhG A TAX MCOEL RUIv CAN 8E 

MINIMIZED BY MAKING LINES 02 THROUGH 11 IN FIG, 6,5,1 Ah0 ELEM�hT 

OF A PROGRAM FILE, FOR EXAMPLE, 'RUNfILESo3ETCP7+3'r IN AODITZON,

LINES 12 THROUGH 31 OF FIG, 6,S,2 CAN BE CREATE0 AS AN ELEMEhT OF 

A PROGRAM FILE, FOR EXAMPLE, 'RUNFILES,RUNXXX', IF THESE ELEMENT8 

ARE CREATED, THEN THE CONTROL STREAM INSTRUCTDCNS IN FIG, 605.2 

REPHESENT THE MINIMUM NUMBER OF INSTRUCTIONS hECESSARY PO PRCDUCE 

A TAX PODEL RUN, ThIS APPROACH IS ESPECIALLY USEFUL WHEN THE USER 

IS WORKING IN DEMAND MODE SINCE IT ALLGhS HIF( TO 'OSTART1 A RUN BY 

MAKING FIG, 6,S.Z AN0 ELEMENT IN THE SAME FILE, FOR EXAPPLE, 

'RUNFILES,TARhOO', CONNSEQUENTLY, THE GEMANO USER CAN START A TAX 

MOOfL RUN BY SIMPLY TYPIh[;r IN DEMANO MODE, TkE FOLLCWIhG 

INSTHUCTION, 

*START RUNFILESoTARkOO 

THIS ASSUM�$, OF COURSE, THAT THE FILE RUNFILES hA8 8EEh RELEAS�De 

IN CONCLUSION, THE USER SHOULO NOTE THAT THE PARAMETERS Clu THE 

'RUN STATEMENT' MUST REFLECT THE SPECIFIC REQLIREMENTS FGR HIS Huh 

ANU ThERFORE, MAY DIFFER FROM THOSE SWOkN Ifu THE ILLUSTRATIONS 

PROVIDED hEREe 
3 t 

TREASURY PERSONAL INDIVIDUAL. INCOME TAX MODEL, 27 JlrN 78 6-62 

ORUN TARWOO,TAffw,VER6,5,500 

OASGpT 1O*,FI2//64 

@ASG,T 14,,F/10//64 

@ASG,T 16o,F/10//64 

@ASGpA OATA*FILENAME1978, 

@USE 7,,DATA*FLLENAME197Bo 

*ASG,AX ROOEL-PRGGRAM, 

OASGiT PFX, 

@COPY MODEL-PRUGRAM.,PfXo 

@FREE MCDEL-PROGRAM, 

MOO�L 

@ELT,IDN fPFS.TMDATA,,ENDL 

.Ol RUlv STATEPENT 

,Q2 ASSIGN STGliAGE FUR 

TABLE GUTPtT 

,02 ASSIGN STORAGE FOR 

TABLEMAKER OUTPUT 

,04 ASSIGN STORAGE FUR 

CIRECTGRY LPDATE 

,OS ASSIGN ThE 78 TAX 

SAMPLE 

,Ob EQUATE THE INTERNAL 

007 

,08 

,OS 

.lo 

,ll 

FILENACE 7 TO 

CATA*FILENAME1978, 

ASSIGN THE TAX MODEL 

SClrRCE PROGRAM 

AS3IGN TEMPORARY 

kCRKINC SPACE 

COPY ThE TAX MGDEL 

RELOCATAi3I.E 8 SCURCE 

ELEMENTS 1.C TPFS 

RELEASE ThE TAX 

FILE 

LIUSERT THE ELEMENT 

TPOATA IN TPfS ..................................... * L.30, 131, b32r 8 133 CARDS * 

*****************************e******* 

@END ENOL 

*%UT PFX.COVERP 

i978197e 

OAOO TMOATA 

@ELT,IDL TPFS.CSLIST,,ENDL 

@PACK PFX, 

@PREP PFX, 

OAOD PFX,XQT78 

,li! END QF TMOATA 

.b3 

,14 

,tS 

,16 

.17 

,18 

,19 

************************************* 

************************************* GENERAL LOGIC 8 EDITING CAR~S * 

0AOD TMOATA ,20 

..................................... 

*TITLE%&Yr $CHANGE, SPLNXpYLZ, SRATE* ..................................... 

*�bo ENOL ,Zl 

EXECUTE COVER PAGE 

PROGRAM 

LEVEL Ah0 Lbh OF THE 

RUN 

DATA FOR CQVER PAGE 

INSERT' THE ELEMENT 

CSLIST IN TPFS 

PACK PFX, 

PREP PFX, 

IFiSERT THE COLLECTOR 

IhSTRUCtIDhS (THIS 

ACCCMPLIShES THE 

CVERLAY 1 

INSERT DATA FOR ThE 

TABLEMAKER OUTPUT 

END OF THE ELEMENT 
TREASURY PERSONAL INDIVIDUAL INCCM TAX MODEL. 27 JUN 78 6-61 

CSLIST 

@ADD CSLlST ,22 INSERT CSLIST INTO 

Th� INPUT STREAM 

@ASG,AX STORE*tSTIMATES, ,23 ASSIGN THE FILE kHERE 

Th� RESULTS ARE TO 6k 

STUGEO 

@ELT,IDN STOGE*ESTIMATES,RUNXXX,rflN ,24 CRCATES AN ELEMENT 

CF THE FJAME RUNXXXX 

84DDpD 14, ,25 PODS THE RESULTS OF 

Thk TAX HCOEL RUN 

@END FIN e26 3ENT.IFJEL CARD 

@XQT PFX,UPOATE ,27 EXECUTES THE UPOATE 

PROGRAM 

@ADO STURE*ESTIHATES,RUNXXXX ,(?e AGO3 THE DATA FROM 

THE CURRENT RUN 

8ELTpIDN STORE*�STIM~TES.DIRECTORY,,FI~ -29 LPOATES THE 

CIRECTORY TABLE 

eADD,O 16, ,3Q Po09 THE kEW 

CIRECTCRY 

@,END FIN ,!lSENTINEL CARD 

8FREE STORE*�STIMATES, .32 RELEASE THE STORAGE 

FILE 

8FIN v33 EhO OF RUN 

FIG, 6,5olt CONTROL STREAM INSTRUCTBChS FCR A 

TAX MODEL RUN SUBHITTED FRCP CARDS 

001 FUN STATEPENT 

,02 ASSIGN THE INPUT FILE 

.43 INSEHT THE FILE 

PLNIPULATICN CONTROL 

STATEMENTS (SEE 

SECTION 8,2,1)

e04 INSERT THE TAX 

PCDEL RUN 

CGhTROL STATEVENTS 

AND OATA CAROS 

rF IN ,Os END OF RUN 

FIG, 6,5.2: THE MINIMUM COkTROL STGEAV IhSTRUCTICNS 

FOR A TAX MODEL RUN SUBMITTED FROP CARDS 
THEASLRY PERSONAL INOIVIOUAL INCOME TAX MODEL, 27 JUN 78 7-1 

m 7, A OESCRIPTION OF THE TAX MODEL OUTPUT. 

THE PRINTED CUTPUT FROM A SUCCESSFUL TAX MOOEL RUE( CON319TS GF TMC 

MAJUR SECTIONS. ThE FIRST SECTIClu PROVIDES A DE3CRIPTICN OF THE 

INPUT PARAMETERS FOR ThE VARIOUS PLANS AND ThE SECOhO SECTION 

PRESEhTS THE TAGULATED STATISTICS CBTAINED UhCER EACH TAX PLAN. 

7.2. SECTION 1: INPUT PARAMETER OUTPUT, 

7,t.l. SAMPLE OESCRIPTIGN. 

THIS GUTPUT CONTAINS A PRINTOUT OF THE $SAMPLE CARD, THIS LIST 

DISPLAYS 1HE BASE YEAR OF THE SAMPLE, ThE PRCJECTED LEVEL CF THE 

SAMPLE, THE NUMBER OF RETURNSi AN0 OTHER DESCRIPTIVE lNFCRMATIONo 

AN EXAMPLE OF tHI3 OUTPUT I3 PROVIDED BY FIG, 7.2.1, 

7.2.2. GENERAL LGGIC AN0 EDITING, 

EACH DATA CARD UEARING A PART NUMBER OF 1 IS CISPLAYED IN THIS 

3kCfION IN A FORMAT IOEluTICAL TO THE IhPUT FICRPAT (EXCEPT FOR THE 

110 CARD), Ih ADDITION, ANY AN0 ALL OF THE OPTIONAL PART 1 CAR08 

THAT APPEAR IN THE INPUT D�CK hILL BE LISTED. ThIS IS FGLLOkED BY 

A TABLE NHICH Dt;SCRl8E3 THE CONTENTS OF THE LCGIC SWITCbE3 ThAT 

hERE INPUTTED Oh DATA CARD 110, FINALLY, THE TITLE FOR PLAN X IS 

ENCLOSED IN A BGX AT TH� KITTOM OF TH� PAGE, THIS QUTPliT IS ALSC 

ILLUSTRATED Ilu FIG, 7.2.1, 

7,2,3. PLAN Y TITLE CARD AND DEDUCTIGN MATRIX OUTPUT. 

SINCE THE PLAN Y TAX PARAMETERS ARE INITIALLY EQUATED TC THE PLAN 

X TAX PARAMETER$r THIS PAGE WILL BE INCLUDE0 IN ThE OUTPbT ONLY IF 

DATA CARD8 THAT MODIFY PLAN Y OH X ARE ENCOUhTERED IN ThE INPUT 

DECK. kHEN ThI8 IS THE CASE# THE PAGE PRESkNTED 1%FIG. 7.2.2 

WILL HE PRINTED WITh THE TITLE FCR PLAN Y APPEARIIrG AT THE TOP OF 

TH� PAGE. 
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TAX PARAMETER OUTPUT, 

4X M DEL, 2 JUIV 7-5 

1 

AS WITH THE PHEVIQUS PAGE, THIS PAGE I3 PRIhTED CNLY IF DATA CARDS 

ThAT FCOIFY PLAN X GR PLAN Y ARE ENCOUNTEREG Ih THE IkPIJT DECK. 

AS FIG, 7,2,3 ILLUSTRATES, THI3 PAGE PRCVIDES THE VALUES CF ALL 

ThE REPAINNING TAX PARAMETER8 EXCEPT Th� TAX SCHEDULES. TWE 

NUMUEFiS ENCLGSEO 1N PARENTHESIS Ilu FIG. 7,2,13 GO NOT APPEAR ON ThE 

ACTUAL GUTPUT BbT ARE AODED HERE TC REFERENCE THE SECTICh IrU 

CHAPTER 6 WHICH DESCRIBED THE INPUT DATA CARG THAT MCOIFIES THE 

VALUES OF THE TAX PARAPETERS APPEARING ON ThIJ PAGE, 

7.2,5. TAX $CH�DULE3 GUTPUT, 

ThIS IS THE LAST PAGE OF THE SECTfClv 1 OUTPUT ANC AHE PRINTED ONLY 

IF DATA CAROS ThAT MODIFY PLAN X CR Y ARE ENCCUNTERED Ih THE INPUT 

DECK. AN EXAMPLE OF THE PAGES IN THI3 OUTPUT AHE PROVIGED IN FIG, 

7,Z.U AIvO ARE SELF-EXPLANATORY, MOOIFICATLCNS OF THE Nbfr9ERS IN 

ThE TAX $CHEDUL&3 ARE ACCOMPLISHED t3Y USE GF THE DATA CAR08 

DESCRIBE0 IN 6.4 OF CHAPTER 6, 
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THEASbCiY PERSONAL INDIVIDUAL INCOME TAX MODEL. 27 JUN 78 7-19 

7.3. SECTION 2: INTERMEDIATE OUTPUT. 

FIGUPE 7.3.1 PRESENTS Tt'E INTERMEOXATE CUTPLT, THIS OUTPUT 

CCNSIsTS GF VARIOUS PIECES OF INFGRCATICN: 

(A) LIhE 2 SHCkS THE AMOUNT UF AODITICNAL CORE REQUIREC 

FCH TABULATING THE OPTIONAL TABLES. IF NG CPTICNAL

TABLES kERE HEQUESTED8 THIS LINE kILL REP(: " 0 

AOOITIONAL SPACES USED FOR OUTPUT TAdLES". 

(8) LINES 3 THRU 7 DESCRIBE THE BASE YEAR GF THE SAMPLE, THE 

PRUJECTEO LEVEL OF THE SAMPLE8 ThE NUMeEFi OF RETURNS IN THE 

SAMPLE, Th� NUMBER Of MOROS IN EACH RECOkC, AN0 THE 

MAXIMUM NLrMBER OF BLOCKS OF 1792 lvORDS Ih THIS SAMPLE. 

(C) LIhES 8 THRU 10 CChTAIN AN ALPHANUMERIC CESCRIPTIGN 

GF THE TA# SAMPLE CISED FOR TbIS SIMULATLCN. 

(D) LINES 11 AND 12 ARE PRINTED rrHcEN ThE TAX SAMPLE IS 

CLCS�D. LINE 11 SHOWS THE NUPf3ER OF RETLRNS PRCCESSEO 

t3~THE TAX MODEL, USUALLY 50,ibo. LINE 12 SH~ST~E 

hlJMBER OF ULOCKS OF DATA REA0 AN0 THE VALCIE OF THE STATUS 

kCRD FOR EACH INPUT BUFFER, IF THE RUN EXECUTES NCRMALLY 

Oh& OF THESE STATUS WORDS SHCULO HAVE A LALUE OF -2 ANO 

ThE OTHER 3hOULD HAVE A VALUE UF 1792. 

(E) LINES 14 ThRU 16 PROVIQE AN ACCOUNTING OF THE HETUGhS 

READ FRGM THE TAX SAMPLE AND HOW MANY kERE CR hERE NOT 

USED IN CONSTRUCTIkG THE TABlES. 

(F) LINES 17 AND 18 SHGH HOW MANY )UEIGhTEO RETURNS PREFERRED 

PLAN Y AS aPPosEo TO PLAN x QP IN THE CASE CF TWO TAX PLANS, 

HCk MANY kEIGHTED RETUHNS CMSE PLAN Y Ofi PLAN 2 AS 

CPPOSED TO PLAN X. 

(GI LINES 19 AND 20 PRGVIDE SOME BRIEF SUMMARY IhFCRMATICk 

C~UTHE TAXATION OF CAPITAL GAINS UEtDER TFE ALTER&ATIVE 

TREATMENT, 

(HI LINES 21 AND 22 SHOW HOM HAY RETURIUS hERE NCT READ CURING 

TPE SIMULATICN. IF ALL OF THE RETURIvS kERE PRCBERLY 

F~EAO, LINE 22 kILL CONTAIN ALL ZERCES. 
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TREASURY PERSONAL INDIVIOUAL INSOME TAX MGDEL. 27 JcIh 78 7-12 

7.4. 3� TION 3: At3UiATED TAX STAT STI 3. 

FIG. 7.4.1 PRESkkTS THE PLAN Y TITLE PAGE ThAT PRECEEDS ALL OF TPE 

TABULATED TAX STATISTICS. ON THE S�CQND LI&1HE USER hILL FIND 

THE VERSION OF THE TAX MODEL EVPLOytD TC MAKE THE RUN, rHcE OArE 

THE RUN dA3 PERfORMEOp AN0 THE TIME OF DAY THE RUk LvAS CCMPLETEO, 

7e4.2, TAX CHANGE BY PERCENT CHANGE IN TAX, 

AS ITS TITLE IMPLIES, TABLE 1 CQNTAINS INFORPATICN ON THE EFFECTS 

OF A PROPOSE0 TAX LAW ChANGE OI9TRIEUTEO BY TbE PERCENTAGE CHANGk 

IN TAX LIAtifLITY, FIG. 7.4.2 PRESENTS SELECTED PAGES FROM THE 120 

PAGt3 THAT CAN HE PRODUCED FOR THIS TABLE. fkE USER HILL hOTE 

THAT CCN$IOERABLE R�TAIL HAS eEEN ACHIEVE0 8Y OI3TRIBUfING RETUHh3 

INTO NONOTAXABLE AN0 TAXABLE CATEGORIES AN0 Sli@DIVIDINC EACH 

CAT~GQRY IN~GThCSE WICH INCURReO A TAX IIvCREASE AN0 THCSE WHICb 

INCURRED A TAX OECRtAaE, BY DI$TRIBUTIhG RfiTLRN3 IN ThIS WAI~NER~ 

TRE-ANALYSIS OF CdMPLEx TAX PROPO8ALS CONTAINhING SEPERATE 

PAOVISIONS FOR WTH INCREASING AND DECREASING TAX LIA8ILITY IS 

EASILY FACILITATED. ANOTh�R USEFUL FEATURE lb TABLE 1 13 THE 

CGLUM)U WHICH REPORTS THE NUH86R OF RETURN8 Ih THE SAMPLE FCR EACH 

CATEGQRY, HOW EVER^ CAUTION SHOULD ee EXCERCISED IN ORAHING 

CONCLUSIaN3 WHEN ThE NcIhBER OF SAMPLE RETURNS I8 SMALL FOR THIS 

1flPi1ES A hIGH SAMPLIN6 VARIABILITY QF THE ESTIMATES IN thAT CELL, 

THE CCPPUTATION OF TABLE 1 I3 CONTROLLEO BY LCGIC SNITCH NUMBER 11 

AS oOCUM�NTEO IN 6.Z.t, WHEN ThE COMPUTATlrONGF TABLE 1 

REQUESTEop THE PRINT CONTROL CARDS DQCUMENTED IN 6.2.3 ARE 

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TFiEASURY PERSCIvAL IIvOIVIOlrAL INCOPE TAX MODEL, 27 JQN 78 9-18 

7.4.3, TABLE la: SUMNAfiY Of THE EFFECTS OF TFE PHOPCSAL. 

TABLE 1A PROVIDES A SUMMARY OF THC EFFECTS GF THE PROPOSED CHANGE 

I&THE TAX LAh' AND CONSISTS Of FOUR PAGtSi CNE FCR EACH 8F THE 

ThRkE TAX RATE SChEDULES, Ah0 A SUMMARY FUR ALL SCHECUCES, 

FIGURE. 7,4,3 PRESENTS AN EXAMPLE OUTPUT FOR THIS TABLE, 

THRtE F~ATURESOF TABLE 1A ARE NOTEWORThY: 

(AI 1HXS TABLE PROVIDES THE UkLY BREAKOOWN CF TAXAeLE 

iNCCME UNDER THE PROPOSED TAX LAW CHANGE kHICH 

CCRR�SPONOS WITH THE STATISTICS OF INCCPE CCNCEPT 

OF TAXA@&� INCOME, ThAT 13, IT INCLUOES CAPITAL 

GAINS INCCME TAXABLE AT ThE ALTERhATIVE RATE.* 

(81 TbE FIGURES FCR TAX CHANGE! AOJUSTED GROSS IbCOM�r 

NLMBER OF RETURNS, SCHEDULE! AN0 TYPE CF GEGUCTION 

14 TABLE 1A ARE CC~SISTENTI kITHIh RoLIIv0-cFf ERRUHI 

kI7H THE CBRHESPONCIhC FIGURES FOR TABLES 1 AND 2, 

(C) TABLE 1A TCGETHER kITH TABLE 5 PROVIDES A COMPHEhENSIVf AGGREGATE PICTURE OF TH� REVENUE AND 

OISTRIi3UTIGNAL EFFECTS OF THE PRGPCSEO TAX LAW 

CPANGES rvHILE TA8LES 1 AN0 2. FILL IN ThE DETAILS 

CF THIS PICTURE, 

ALTHOUGH TABLE IA HA3 BEEN LNGLUDEG IN THIS DCCUPENT FGLLOhIhG 

TABLE 1, IT APPEAHS IN TH� ACTUAL OUTPUT AS TI=� LAST SET OF 

TAtlLtS. IN ADOITION, TABLE 1A Is NOT UbiDER YhE CONTROL CF ANY 

PRINT SkITCHES AN0 THEREFQRE, IS ALhAYS COMPCITED AND PRINTED. 
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PAGE 28 

c 

ALL SCHEDULES 

NUMBER UF EST IMATED AMUUNT UF URIGINAL CHANGE IN UR It3 I NAL URIGINAL TAX 

RETURNS AGGREGATE TAX CHANGE TAXABLE INCOME TAXABLE INCOME AQ I AFTER CREDITS 

IN SAMPLE NU. RETURNS (MILLIUNS 1 (MILLIUNS) (MILLIUNS) (MILLIUNS) (MILLIONS) 

RETURNS WITH ITEMIZED DEDUCTIUN 

EXPANDED INCOME 

S********-S 5000. 119. 431801. -4.395 163.75 -55.52 1 615.68 4.53 

S 5000.-S 10000. 

S 10000.-S 15000. 

542. 

1374. 

2229832, 

4242671. 

- 154.244 

-547.096 

6007.48 

28532.33 

-1 142.67 

-3061.07 

17474.75 

53879.74 

727.26 

4389.70 

c 15000.-s 20000. 

S 20000.-S 30000. 

2223. 

7198. 

5389059. 

8278205. 

-948.707

- 1 945.370 

58388.79 

137629.97 

-4307.48 

-7335.28 

94'268.b2 

203317.76 

10140.10 

27289.22 

0 30000.-S 50000. 

S 50000.-S 100000. 

6778, 

4479. 

4897453. 

13041 75. 

- 1564.295 

-591.172 

132212.68 

65477.03 

-4383.26 

- 11 96.54 

179641 .96 

84137.40 

32270.37 

21880.34 

S 100000.-S 200000. 2678. 285342. -147.722 28978.96 -266.95 35974.67 12538.01 

s 200000.-S******** 4009. 75608. -40.329 23016.94 -67.07 29269.17 1 341 7.91 

EXPANDED INCUME 

S******** -S 5000. 61 19. 22587204. - 1 64.013 6212.07 - 1474.94 45875.79 -141.88 

S 5000.-S 10000. 

s 10000.-8 15000. 

S 15000.-S 20000. 

3972, 

2923. 

2438. 

16928556. 

9856959. 

6219973. 

- 1004.918 

-1 129.574 - 1 016.062 

55590.94 

76547.51 

76103.37 

-7107.20 

-5964.12 

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123866.97 

121 11 1.47 

107266.41 

7520.35 

12677.74 

13914.52 

s 20000.-S 30000. 3397. 4692580. -990.018 85159-61 -3561.15 110231.01 17485.44 

S 30000.-S 50000. 

S 50000.-S 100000. 

121 1, 

338. 

940440. 

1 2461 6. 

-266.131 

-51.288 

27795.55 

6562.12 

-696.23 

-101.67 

32788.57 

7240.48 

6988.81 

2129.09 . E 100000.-S 200000. 106. 1 3666. -5,787 1410.96 -9.74 1467.57 592.35 

S 200000.-S******** 96. 2260. -1.121 572.82 -1.69 571.80 324.72 

-4628.912 334954.96 -23288.75 

RETURNS FUR BOTH TYPES DEDUCTION 

EXPANDED INCUME 

I******** -$ 5000. 6238. 2301 9005. - 168.408 5375.82 - 1530.47 47491 .47 -137.36

8 5000.-S 10000* 4514. 1 9158388. -1159.163 61598.42 -8249.87 141341.72 8247.61 

S 10000.-S 1 5000. 4297. 14099631 . - 1676.670 1 05079.84 -9025.19 174991.21 17067.44 

S 15000.-S 20000. 4661. 1 1 609032. - 1 964.769 134492.16 -8679.29 201535.23 24054.62 

s 20000.-c 30000. 10595* 1 2970785. -2935.388 222789.58 ,10696.43 313548.76 44774.66 

E 30000.-S 50000. 7989. 5837893. -1830.426 1 60008.23 -5079.50 212430.53 39259.19 

S 50000.-S 1 00000. 4817. 1428791 . -642.460 72039.15 - 1298.41 91377.87 24009.44 4 

I 

s 100000.-S 200000. 2784. 299008.' -153.509 30389.92 -276.69 37442.24 13130.36 h) 

S 200000.-5******** 4105. 77868. -41.450 23589.77 -68.76 29840.97 13742.63 N 

TUTALS 

Fig. 7.4.3: Continued 
-- 

TREASURY PERSGNAL INDIVIOUAL INCOME TAX MCOELm 27 JUh 78 4-23 

7,4.4, TABLE 2: TAX CHANGE BY AB30LUTE CHAlvGE Ih TAX. 

THIS TABLE PROVIDES INFCRMATION Clu THk EFFECTS OF A PRCPCSEO TAX 

LAW ChANGt DISTEIBUTED BY THE SAME CATEbORItS AS IN TABLE 1 BUT 

FOR THE ABSOLUTk CHANGES RATHkR THAN THt PEHCEkTPGE CHAtcrGES. 

FIGURE 7.4.4 PREStNTS . - SELECTED PAGES FROM TH� 120 PAGES THIS TAbLE 

MAY CChTAiNm 

THE CGVPUTATION GF-TABLE 2 IS CONTRQLLED 6Y LCGIC ShITCk luUt4BER 12 

AS UOC~~ME~TED Ilu 6.2.2 AN0 WHEN REQUESTED IS PRLhTED ACCCRCING TC 

ThE INSTRUCTIONS PRCVIOEO UN ThE PRINT CGNTffGL CARDS DCCUMENTkD Ih 

bm2.4, 

7,4.5, TABLE 5: SOURCES OF INCOME 8 AOJUSTFEhTS TO AGI, 

TABLE 12 DISPLAYS A TABULATION OF NET INCOME ah0 ADJUSTHEkTS 

CLASSIFIED BY TAX SCHEOULE, BY TYPE OF OEDUCTI.CE(, AND ey ADJUST~D 

GHOSS INCGM~ AND IS A SUMMARY OF TABLES 1.4~ 1mSt AND 1.6 IN TH� 

1968 STATISTICS OF INCCME. ONE OF THE 12 PGSSIBLE PAGES Ik THIS 

TA8LE IS PRESENTED lk FIGURE 7.4.5. TABLE 83 IS THE ONLY ONE 

PHOUUCED BY THE TAX MODEL THAT I8 UNAFFECTEO EY CHANGES IN AhY OF 

TRE TAX PLANS, ITS PRIMARY USE I3 TO PROVIDE A DETAILED 9R�AKOLIkh 

Of TliE INCOME SOURCES OERIVED FROM THE TREASURY'S SAMPLE FOR 

COMPARISOtY NITH THE STATISTICS OF INCOME IN ThE EASE YEAR AND FOR 

FQRECASTING IhCGME IN FUTURk YEARS, 

Th� cCMPUTATION OF TAeLE 3 19 CONTROLLED BY LCGIC SWITCh NUMeER L2 

AS OOCIJHENT~D IrC 6*2*2, kHEN THE COMPUTATION ICF TABLE I? I9 

RtQUESTEO, THE PRINT CONTROL CAR0 DOCUMENTED Ih 6mZw5 IS REQUIREOm 
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TREASURY PERSONAL IEtOlVIDUAL INCaME TAX MOOEL. 27 JLlN 78 . 7-25 

7.4.6. TABLE 4: CREDITS, DEDUCTICNS, Ab0 EXEPPTIONS. 

TA8LE 4 I$A TAbULATIrjN OF TAX CREDITS, STAIUGARO AND ITEHLZED 

DLDUCTIOhS, AN0 EXEMPTICNS CLASSIFIED BY SCt’ECbLE, TYPE CF 

DkDUCTItjN, AN0 ADJUSTED GWGS3 INCOMfi AND I3 A SUMMARY OF VARIUUS 

TA~JLESFRljM StCTIGN 2 OF THk 1968 STATISTICS CF INCCME. AS AN 

EXAMPLE, ONE OF THE 12 PossIeLE PAGES IN TANE 4 IS PRESENTED IN 

FIGURE 7.4.6. TABLE 4 CAN BE USEQ IN THE SAP� MANNER AS TABLE 38 

THAI 1st AS A CCMPARISICN WITH TPE STATISTICS CF INCCME NHEN 

FUR�CASTING ThE FUTURE LEVELS OF CREDITS, OkDtCTIGNS, Ah0 

ExEMPTI(JNS. IN AOOITICk, TABLE 4 MAY et USED TU ESTIMATE THE 

EFFCCI CF CREDXT, RUUCTION, AND Exmwah CIWGES UEOER TM 

PROPOSE0 TAX PLAN BY COPPARING IT kITH A TA8LE 4 COMPUTE0 UNGEH 

THE PGESENT LAW. 

THE COPPUTATION CF TABLE 4 IS CUNTRQLLED BY LCGXC SkITCH hlJMBkH 14 

AS DOCUMENTED IN 6.2.2. kHEN THE CUMPUTATLGh CF TABLE 4 IS 

RtQClESTED, THE PRINT CONTHGL CAR0 DOCUMENTED Ih 6.2.6 IS REQUIRED. 

7.4.7. TABLE 5: TAX ChANGE BY AGI, SChEGULE, & DEDUCTLGN. 

TA8LE S PRESENT3 A SUMMARY OF TAXAeLE RETURNS MACE NGN-TAXA8LE 

NONITAXABLE RETURNS MADE TAXABLE@ RETURN3 WITH A TAX IkCREASE, 

RETURIUS WITH A TAX DECREASE, AN0 RETURNS kk.rICk ChANGED ThEIR FUHM 

@F UEUUCTICN. EACH PAGE IN THIS TAtlLE 13 CLASSIFIED tlY TAX 

SCHtDbLt, TYPE OF-OEDUCTION, AND AOJUSTEJ GRCSS INCOME CLASS. 

FLGuRE 7.4.7 OISPLAYS ALL FOUR PAGES FCUND IN TAeLE S. THIS TAC3Lt 

CANNOT BE EDITEU ANO IS ALWAYS PRIbTEO hHENEVER AT LEAST ON� 

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TREASCIGY PERSOkAL IfrOIVIDUAL INCGME TAX MODEL, 27 JON 78 7-15 

7.4.8, TA8LE 6: CISTkIBUTION OF TAXABLE INCGPE AN0 TAX, 

EACH FPGE Ih TAdLE 6 PRESENTS TAXABLE INCCWE Ah0 TAX OISTRIBUTEO 

UY hAkGINAL TAX RATE FGR A SPECIFIED ADJUSTED GAGSS INCOME CLASS 

AN0 FCR A SPECIFIkD TAX SCHEDULE, IN AOOlTICh, TABLE 6 PRCVIDLS 

ThE CUPULATIVt ANU PERCENTAGE CUMULATIL~OI$TRIBbTL(iN OF TAXAULE 

INCUME AN0 TAX SUMMED FROM THE LOhE3T TC THE FIGHEST (LABELED 

LuW�ST) ANO SUMMED FRCM THE HIGHEST TO THE LGhEST (LAtIELED

HIGHEST), THE 40 PAGE3 IN THIS TAOLE, GNE CF khICH IS SHGWN IN 

FIGUHE 7.U.8, MAY 8E PROOUCEO FOR EITHER PLArV X CR PLAN Y 8UT NUT 

BOTH. 

THE CChiCEPT OF TAXABLE INCOME EMPLOYED IN TABLE 6 I3 TAXABLE 

INCUM� SUBJECT TO THE OAOINARY RATE SCHEDULES AN0 ThEREFCRE, IS 

NtT Of EXCLUDED CAPITAL GAINS INCOME, CONSEQLENTLY,TlIE CQhCEPT GF 

TAX LIAt3fLITY IS TAX BEFORE CREDIT'3, ThE TAX LIAt3ILITY IN TA8LE 6 

HILL DIFFER FRCM THAT GF TABLE 1A (11 BECAUSE THk TAX SAVIhGS 

FHUM TFE ALTERhATIVE TAX, THE MAXIMUM TAX, ANC INCOME AVERAGING 

AH� GPITTEO (2) ALL TAX AND EXEMPTION CREDITS AAk GMITTEOi AN0 

(3) TFE MINIWUP TAX 15 CMITTED, SINCE TABLE 6 I3 

PH~MARILYUSED TG COMPUTE NEW RATE 3CrEOULkS YIELOINC A 

PdEDETERMINED REVENlrE CAIN OR LOSS, ThE A6OVE CMPISSIahSt WITH TH� 

EXCkPTfON OF Thk TAX SAVINGS FROM THE ALfERhATfVE TAX AlrD THE 

MAXlMbH TAX, ARE RELATILELY CONSTAhT AND DC KT INTEAFERE kITH AN 

ACCURATE ESTIMATION OF THE kEN RATE SCHEDULES, 

LOGIC SWITCH IUIJMBER 16 CONTROLS ThE COMPUTATBCN CF TABLE 6 A3 

DUCUMEhTED'Ltv b,Z.Z, hhEN THIS TABLE IS REQUESTED# THE PAINT 

CUNTRGI. CARD OGCUMENTED IN 6.2.7 13 REQIJIREC, IN AOCITICN, LOGIC 

SwlTCr NUHBkR IS SP�CIFIES kHETHER TA8LE 6 f3 TO 6� PRGCUCEO FOR 

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TREASURY PERSChAL IlvOIVIDUAL INCOME TAX MQDEL. 27 JLN 78 7-47 

7DU,11, TAHLE 18: SUIIMARY EFFECTS OF PROPCSEC TAX ChAhGE, 

TABLE 18 PRESENTS fl SUMMARY OF*MGST CF THE ITtMS THAT hbVE ALREADY 

APPEAAEU IN TABLES 1A Ah0 S AS WELL AS SOME ITEMS THAT CC NCT 

APPtAH AkYkHERE ELSE IN THE TAX MlrOEL GCITPUTI TClE TABLE IS 

ILLuST~AT~DTFU FIG. 7,U,lla 

SCPL CF TbE AGOITIO~AL ITEMS THAT APPEAli Itt TABLE la AREm­

(e) TbE ~MbllkTOF AGI CINUER PLAN Y AND TbE ChANGE IN AGI 

(C) THE APU~~UTOF TAXABLE INCCME UhOER PLAN X 

(01 THE NUMBER OF ITEMLZEO RtTURkS UkOER PLAN X AND PLAN Y 

(E) THE NUPEER OF RETURNS NITH CUTLAYS llhC�G PLAN X 

AND PLAN Y 

(Fl Tbk AMUUNT OF EARNED IrJCGME CREDIT Ah0 PINIflUM TAX 

UNUER PLAN X Ah0 PLAN Y 

(GI ThE AMUUNT Ah0 CHANGE IN ClrTLAY3 UkOER PLAN X Ah0 PLAN Y 
e ­ ......... w .

Y

z. . 

......... 

N Nc)Q(ObQ x - C -(oC)IC)- ax. 

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......... 

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TREASURY PERSONAL INDIVIDUAL INCOME TAX MODEL. 27 JC~N 7e 8 - 1 

6, EXAMPLE OF TAX MOOEL INPUT CONTROL STREAM3. 

THE INTENT OF ThIS CHAPTER IS TO PROVIDE THE LSER WITH SEVERAL 

EXAMPLES OF THE INPUT CGNTROL STREAM FOR SPECIFIC TAX PffOPCSALSe 

THE INPUT CGNTRCL STREAM FOR ANY GIVEk TAX PLAN YAY CENSIST CF 

OkLY GATA CARDS OH iT HAY CONSIST OF DATA CARCS AN0 'FCRTRAN' 

STAiEPEhTS THAT MLDJFY THE LXXSTING TAX VCOEL PRCGRAM, SECTIuh 

8.3 PGCvIDES TbliEE EXAMPLES OF TAX PRCPCSALS TPAT 4RE CAPPGLE OF 

atI14G COMPLETELY SPtCIFIEO NITH DATA CARDS. 3ECTION 8.4 PRESENTS 

THREE PORE EXAPPLES. EACH OF THE EXAMPLES Ih SECTIGN 8.4 REQUIHES 

StiMt ~CCIFICATICNCF THE EXISIING TAX PCiOEL PFCGRAM AS nELL AS 

UATA CARDS Ik CROER TG COMPLETELY SPECIFY TkE TAX PHGPCSAL. 

FINALLY, THE REMAINNIPrG SECTIUNS CCNTAIPr SPEClALIZEo EXAPPLES 

hnEHE TtiE PuRPCSE CF TkE TAX MCvEL RlJh IS CTkER THAN REVEKL'E 

ESTLMATIO~. 
z ,. I . 

THEASbRY PERSONAL INDIVIDUAL INCCME TAX MODEL. 27 JUN 78 8-2. 

t 

8a2a SETUPS FOR STARTING MODEL RUNS, 

IN ORDER TC EXECUTE EACH OF THE EXAMPLE TAX MCGEL RCikS TVAT 

FLlLLOk, VARICCIS FILES ML3T BE ASSIGNED PRIOR DC THE SPECIFICArIUh 

OF THE TAX PROPCSAL. EACh OF THE SUBSEClIChS eELLjW CONTAIN THE 

APPHOPRIATE CONTROL STATEMENTS TO 'SETUP' A TAX MODEL RLN FOR 

VARIOLS TAX LAMS AN0 PRCJECTED LEVELS, 

8.2.1. SETUP73: 1975 TAX LAW AND 1975 LEVELS. 

8.2.2. SETUP77: 1978 TAX LAW AN0 1978 LEVELS, 
THEASLGY PERSONAL IhOIVIOUAL INCCME TAX MOOEL, 27 JliN 78 8-3 

8.3. EXAMPLE RUNS EHPCCYING DATA CARDS, 

6.3.1. EXAMPLE 1. 

8.3.1.1. STATEMEhT OF THE PROPOSAL. 

SUPPCSE THAT ONE WAhTS TO INVESTIGATE THE REVEkUE EFFECT GF 

LIBERALIZING ThE kXZs~1hGTAX LAW. TH� PRCPCSEO LI8EHALIZATIuN 

WILL bE ACCtiVPLISt'ED c3Y IhCREASING ThE LEVEL CF TAXPAYER 

EXEMPTILINS FRCM $750 PER TAXPAYER EXEMPTIGN TC 91,000 PER TAXPAYER 

EXEMPIICIh, ALL CThEH PEGSCNAL EXEMPTICNS vrILL REPAIR AT THE 

EXISTI~GLEVEL OF $750. THE HEVENUE EUIMUIC~ IS TC eE PADE 

USEIhG THE 1975 TAX MCOEL HALF-SAMPLE PROJECTEC TC 1978 LEVELS AT 

1978 LAN. 

8.3.1.2. INPUT ELEPENT FGR THE EXAMPLE PRGPCSAL. 

@ELT,IDN TPF%eTMOATA,,ENDL 

1 3 0 xxxx 

1 3 lTAXPAYER EXEMPTIONS 

1 3 ZTAXPAYER EXEMPTIONS OF 31,000 

1 7 t-

*E~OEN;L 

~XGTPFX.CCIVERP 

19791979 

@ACC TMOATA 

@ELT,IDL TPF%.CSLISTrrENOL 

@PACK PFX. 

0PkEP PFX. 

QAOC PfX.XQT78 

$SAMPLE NYEAR=1975, NRET=SOOOO, NLEVZ1978, $END 

1 1 0 0 1 

@ACE THDATA 

TITLEX 1978 LAk AT 1978 LEVELS 

TITLEYTAxPAY~RSkxEPPTIONS OF $1000 

SChAPiGE NtWX=Ut NEWYSlr NEkZZO, SkkC 

SFLNY EY(1)=1000,, SEN0 

@END ENDL 
TREASLRY PERSONAL IIvOIVIQUAL INCOPE tAX MODEL. 27 JUN 78 0-4 
9.3.2. EXAMPLE 2. 

8,3.2,1* STATEhEIvT OF THE PROPCISAL, 

AN ALTEkNATIVE TAX LIBERALIZATION PROPCSAL IS GESIGNUED TC ALLOH 

EACH TIXPAYkR TQ CHOOSE ONE OF TWO PROVISIOhS. THE FlRSt 

PRCIVISICN RAISES ALL PEGSGNAL EXEPPTICNS FMCM si750 PEN EXEMPTION 

TU 3825 PER EXEMPTION. THE SkCOND PRCVISICh fiEPLACES ALL PEGSONAL 

EXEMPTftiNS kITH AN EXEMPTIOIU TAX CREDIT OF $190 PER ExE~JPTIo~. 

THE TAXPAYER MAY ELECT TFE PROVISION WHICH YIELDS ThE LCkEST TAX 

LIAUILITY. 

IN THIS EXAMPLE, THERE ARE THREE TAX PLANS: PLAN X = PRESENT LAHrr 

PLAN Y = %82S PERSOlvAL EXEMPTION$, AND PLAN 2 = $190 EXEMpTICtd TAX 

CREDITS. THE INPUT CONTROL STREAM FOR THIS SIPULATICN USING THE 

1975 TAX MODEL HALF-SAMPLE PROJECTED TO 1978 LEVELS AT 1978 LAk IS 

PRESEhTED 8ELOk. 

8,3,2.2, INPUT ELEPENT FOR THE EXAMPLE PROPCSAL. 

eELT,IDN TPf%oTMDATAl,ENOL 

1 3 0 xxxx 

1 3 LPER. EXEMPT, 8 CREDIT 

1 3 PERSONAL EXEMPTIONS Of $825 Cli 

1 3 3EXEMPTIQh CREDIT OF $190 

8EkO ENOL 

@XQT PFX,COVERP 

19781978 

PA00 TMOATA 

*ELT,fOL TfJF$oCSLISTrtENRL 

@PACK PFX. 

*PGEP PFX. 

CACO PFX.XQT78 

%SAMPLE hYEAR=l975, NRET=50000, NLE\r=l978, SEND 

1 1 0 0 r 

CAOC TMDATA 

TITLEX 1978 LAW AT 1978 LEkELS 

TITLEVPER, EXEMPT. S825, PLAh Z 3 $190 EXEMPT, 

SChANGE NEWXZO, NEhYz1, NEWZ=l, SENC 

SPLIVY EY(1)=0~S,,825,,825.,~25., SEhD 

%PLNZ EZ(l]=OotO.~O.rO.~ EZCR=190r~l90~,lCO~~l9Oo~ SEND 
TREA3LiRY PERSGNAL IhOIVIDlrAL INCGME TAX MGOEL, 27 JllN 78 8-6 
'. *1 

TgiEASbRY PERSONAL INDIVIDUAL INCOME TAX MODEL. 27 JUN 78 8.7 

8.3.,3.1, STATEVENT OF THE PROPOSAL.. 

STILL ANCTHER TAX LI8ERALIZATION PRGPCSAL MIGkT CONSIST OF (A) 

RAISIFtG ThE MINIMUM STANDARD OEOUCTLON TO S3rS00, (6) RAISING THE 

MAXIMUP STANDARD DEDUCTION TO S4r500, AlvD (CI ALLQkINC A 

PERCE~TAGESTANDARD OEDbCTION OF 20%. IN ADOITIC~I TG TAeLES 1A 

AN0 S, SUPPOSE THAT TABLE 48 CREDITS AND DEGUCTICNSl IS ALSO 

OfiSIREO. THIS PROPCSAL IS TO BE CCMPARED 4GAIlvST >PRESEkT LAM) AT 

1978 LEVELB. 

8.3.3.2, INPUT ELEMENT FOR ThE EXAMPLE PROPCSAL. 
THEASURY PERSONAL INDZVIOlrAL INCQME TAX MQCCEL. 27 JUN 98 8-8 
TREASURY PERSONAL INOIVIOUAL INCGME TAX MOOEL. 27 JliN 78 6-9 

8.4. EXAMPLE RUNS EMPLCYING PROGRAM PODIFICATIOhS, 

8.4.1. EXAMPLE 4. 

8.4.1.1. STATEMENT OF TH� PROPOSAL, 

CONIDERATION IS BEfhG GIVEN TO USING CIvE TAX FATE 3CHf;Cbl.E FCR ALL 

TAXPAYER3 REGARDLESS OF MARITAL STATUS, IT IS PFOPCSEC THAT THE 

'HAHRIEO FILING JOINT RETURN' TAX RATk SChECULE et USED BY ALL 

TAXPAYERS. ThE INPUT CGNTRGL STREAM HELOW ILLbSTHATES THE PROGHAP 

MOOIFICATICN3 FGA THIS TAX PROPOSAL COPPARED AGAINST PRESEhT LAW 

AT i97e LEVELS ANO LAW, 

eELT,IDN TPFS~TMOATAIPENDL 

1 3 0 xxxx 

1 3 1JOINT RATES 

1 3 ZALL SCHEDULES TAXED AT JCINT RATES 

1 3 3 

@�Et0 ENOL 

OXQT PFX.CGVERP 

19791978 

@ADD TMDATA 

@ELT#IDL TPFS.CSLISTIPENDL 

oFGR,$ PFX.MAIN2i.MAIN2 

046 I 52 

SAVEIJS 

JSOZ 

-58 

JSISAVE 

@PACK PFX. 

@PREP PFX. 

0AOO PFX.XQT78 

$SAMPLE NYEARSl975, NRET=5OOOO# NLEV'-1978, SEND 

1 1 0 0 1 

@ADO TMOATA 

TITLEX 1978 LAW AT 1978 LEVELS 

TH�ASIIRY PERSONAL 11UDJVIDUAL INCGME TAX MGDEL, 27 JUN 78 8-11 

8.4.2.1, STATEMEAT OF TH� PROPOSAL, 

A SENATOR HAS PROPOED THAT THE GENERAL SALES TAX DEDbCTIO1U BE 

MOVED ABOVE ThE LINE, THAT 1st THE GENERAL SALES T4X BECGMES AN 

AOJUSTPENT TO CROSS INCCWE INSTEAO OF A DEOUCTIGN FRCM ACJUTED 

GROSS INCOME. THIS PROPOJAL IS TO BE CGMPAREC NITK PRESENT LAW AT 

1978 LEVELS. THE PROGRAM HOOIFICATIONS FOR ThIS REFCHM ARE 

ILLUSTRATED BELUW. 

8.4.2.2. INPUT ELEMENT FOR THE EXAMPLE PRCPCSAL. 

@ELT,IDN 

1 3 

1 3 

1 3 

1 3 

TPFJ.TMDATA,rENDL 

0 xxxx 

1GENERAL SALES TAX 

ZMOVE GENERAL SALES TAX ABOVE TbE LINE 

3 

@�NO ENOL 

~XQTPFX,COVERP 

19781978 

@4CD TMDATA 

@ELT,IDL TPF$oCSLIST,tENOL

@FCR,S PFX,MAIkZ,,MAINZ 

-46rS2 

RESID=RESIO-D(1061 

DN3~~MAXl(O.O~DN3~D(lO4)) 

@PACK PFX, 

@PREP PFX, 

e400 PFX.XQT78 

$SAMPLE NYEAR=1975, NRET=SOOOO, NLEVz1978, 

1 1 0 0 1 

*AGO TMOATA 

TITLEX 1978 LAWAT 1978 LEVELS 

TITLEYMCVE GEN�RAL SALES TAX ABCVE ThE LIhE 

SCPPNGE YEhX=Ot NEhYtO, NEWZSO, SEN0 

@EhC ENOL 

’ @ADD CSLIST 

@AQG,AX STCRE*ESTIMATES. 

SEND 

@ELTIION STCRE*ESTIMATES.RUNXXXX,,FI~ 

@ADOrO 14. 
TREASURY PERSONAL INDIVIDUAL INCaME TAX MODEL. 27 JlJN 7@ 8-12 
TREASURY PERSONAL INDIVIDUAL INCOME TAX MODEL, 27 JUN 78 8-L3 

A RtSEARCHER WISHES TO INVESTIGATE THE HAXIYUP TAX Glu EARIvEO 

INCOME. IN PARTXCULAR, HE WOULD LIKE TO KNOk FCW MANY RETURNS 

WHICH DO NOT QUALIFY FOR THE MAXIMUM TAX ON EARNED INCCPE UNOER 

THE PRESEhT LAW, kOULO ELECT THE SAVINGS OF TbE WAXINUP TAX ON 

EARNED IYCOME IF THE PREFERENCE OFFSET hAS HEFEALEO. TPE 

RESEARChER hCULO ALSO LIKE TU KNGk HOh MUCh REVENCIE k0liI.C RE LOST 

AT 1978 LEVELS. THIS INPUT CONTROL STREAM APFEARS F3LLOlr. 

8.4.3.2. INPUT ELEMENT FOR THE EXAMPLE PROPCSAL. 

@ELT,ION TPfSwTMOATA,,ENOL 

1 3 0 xxxx 

1 3 IPAXIMUM TAX 

1 f ZREPEAL PREFERENCE OFFSET FOR TPCSE kHC 

1 3 ,3HAO NO MAXIMUM TAX 

oENC ENOL 

*XQt PFX,COVERP 

19761976 

@ADO TMOATI 

@ELT,IDL TPFSwCSLISTftENOL 

*FOR,$ PFX,HAIN2,,CAINZ 

-52 

IFCDATAX .LT. 1,O)GO TC 10 

@FGR,S PFX.TXCALC,.TXCALC 

-11 

OATA=O.O 

-196,196 

IFtNPLAN .Ea, ~)ETI~AMAXl(O.rTINC*RATIC) 

-311 

IF(MAXTAX .LE, O.O)0ATA~lw0 

@PACK PFX. 

@P!iEP PFX. 

@ADO PFX.XQT78 

%SAMPLE NYEARJI975, NRET=S0000, NLEY=1978, %EIvO 

1 1 0 11 

@ADD TMDATA 

TITLkX 1978 LAW AT 1978 LEVELS 
I J 

TREASCRY PERSONAL IhOIVIOUAL INCOME 'TAX MODEL. 27 JUN 78 8-14 

TITL&YREPEAL PREFEREhCE OFFSET 

SCPANGE NENX+OI NEkY=O# NEWZ=O, SEND 

*EkO ENOL 

@AOC CSLIST 

@ASG,AX STOR�*ESTIMATE$, 

@ELT,IDN ST~RE*ESTI~ATES.RUNXXXX,,FIh 

eAO0,O 14, 

@ENC FIN 

OXCT PFX,UPOATE 

@ADO STORE*ESTIMATES.RUNXXXX 

@ELt,IOh STORE*ESTIMATES~OIRECTORYlrfIN 

@AOD,O 16, 

@�FIG FIN 

@FREE STORE*ESTIHATES. 
TREASURY PERSONAL IIUDIVIDUAL INCOME TAX MOREL, 27.5bN 78 e-ts 

1 

8.5. PPINTGUT OF INDIVIDUAL RETURNS, 

8.5.1. PURPOSE, 

SUBHOUTIhE SHOREC hAS DESIGNED TO ALLOh ThE UdEH OF ThE TAX MGDEL 

PROGRAV THE CAPA8ILITY OF PRINTING ALL THE CATA ASSCCIATED MITH Ah 

INDIVIDUAL TAX RETURN. EACH DATA ITEM IN THE BASIC FILE IS 

PRINTEC AND FOLLOkED BY AN ALPHANUMERIC OESCRIPlION. EAC~DATA 

ITEM REQUESTED FROM THE 'OUTLIERS' FILE IS ALSC PRINTED AND 

FOLLOIvED BY AN ALPHANUMERIC DESCRIPTION. 

8,S.t. USER PROCEDURE. 

DESCR IPT LON 

NHERE LABEL IS AN ARRAY CONT4INNING THE ALPhANUMBERIC 

DESCRIPTICN FOR EACH OATA 

M IS THE 

OF Th� 

0 IS THE 

OF TH� 

HM IS THE 

OF THE 

NMAPO IS THE 

BEGINNING AOORESS 

DATA RECORD, 

BEGINNING ADDRESS 

DATA RECORD. 

BEGINNING ADDRESS 

DATA RECORD. 

ITEP. 

OF THE INTEGER PGRTIGN 

OF THE REAL PGRTICN 

OF TPE LAST INTEGER PORTIOh 

NUMeER OF ADDITIONAL VARIAELES REQUIRED FROM 

THE REAL PORTION OF THE 'GUTLIERS' FILE. 

NMAPM IS THE NUMBER OF AOOITIGNAL VARIABLES REQUIRED FROM 

ThE IhTEGER PORTION CF THE "3LTLIERS' FILE, 
PAPD IS THk SUBSCRIPTS 

REQUIRED FROM THE 

FILE. 

PCIPM IS 'THE SUBSCRIPTS 

FiEQUIfiED FROM THE 

FIL�* 

FOR YhE AODITI'CNAL VARIPeLEQ 

REAL PORTIOh CF THE 'OUTLIERS' 

FOR THE AODITICNAL V~RIAELES 

INTEGER PORTICh CF THE 'CUYLIERS' 

8.5.3.1. STATEMENT OF EXAMPLE PRGBLEM, 

SUPPOSE THAT A RESEARCHER WANTS TO INVESTIGATE SCME SPECIFIC TAX 

RETURNS kHERE EACH RETURNIS ADJUSTED GRC33 IKCCME LS LE33 THAN OR 

EQUAL TO S3t000. FUffTHERMORE, hE HA3 IkDICATEC THAT 5 RETURNS OF 

THIS TYPE WILL 8E SUFFICIENT FOR ti18 kEED8. A PRINTCUT8CF ALL ThE 

ITEMS CN EACH CF THE 5 RETURNS IS ACCCHPLIShEC WITH THE INPUT 

CONTRCL SYREAM SHOW maw, 

8,5..3.2. INPUT ELEMENT FOR THE EXAMPLE PRCBLEP. 

0ELTrION TPFS.fMOATAttENOL 

1 3 0 xxxx 

1 3 lDATA PRIIvTfJUT 

1 3 ZPRINTOUT INPUT 

1 3 3hITH AGI LE TO 

@�Et0 ENOL 

*XCT PFX.COVERP 

19781978 

@ADD TMOATA 

oELTtIDL TPFSeCSLISTttENDL 

@FQR,S PFXmMAIN2,,MAIN2 

-1 0 

ICT4=0 

152 

DATA FOR 5 RETUENS 

S3r000 

IF(AG1Y ,GT. 3000,O)GO TG 300 

~cTu=IcT4+l 

IF(ICT4 .GT, 51GO TO 300 

CALL S~OREC(LA8EL,M,D,MH,N~APC,NM~PM,~APG,MAP~) 
THEASbRY PERSONAL IIvOIVIOUAL INCOME TAX MODEL, 27 JUN 78 8-17 

@PACK PFX, 

@PREP PFX, 

04120 PFX.XGT78 

SSAMPLE NYEARt1975, NRET=S0000, NLEVz1978, SEND 

1 1 0 1 

TIILEX 1978 LAW AT 1978 LEVELS 

TITLEY PLAN X 

%ChANGE IYEkX~O~NE)UY=O, NEwZtO, SEND 

@ENC ENOL 

*ADO CSLIST 
TREASURY PERSONAL I~DIVIDLIAL INCOME TAX MCCEL. 27 JUN 78 8-18 

806. BURDEN TABLES, 

8.6.1, PURPOSE. 

SUBHOIATINES BURSET AND BURTAB ALLOW THE USER PC EXAMIrtE THE IMPACT 

OF A TAX PROPOSAL UhOER SPECIFIC ASSUMPTIONS hITk RESPECT TG 

MARITAL STATUS, NUH@ER GF DEPENDENTS, ITEMIZEC OEOUCTICkS, AND THE 

LEVEL CF ADJUSTED GROSS ItdCGllrE. Ih OTkfR hCRC9, SUeROLJTIrrE BURSET 

CREATkS-- ONE AT A TIf+!E-HYPQTHETICAL INOIYICUAL INCCWE TAX RETURNS 

THAT hAVE SPECIFIC CHARACTERISTICS. 

8UROEN TA8LES ARE PRODUCED BY SETTING LOGIC SkIfCH NUMBER 19 EQUAL 

TO A 1 OR A 2. IF A 1 IS SELECTED, THE PRE-SET OPTIONS PRESENTED 

IN TABLE 8.6.1 WILL BE E-)*PLOYEB, 
TREASURY PERSONAL IIUDIVIDUAL INCOME TAX MODEL, 27 JUN 78 8-19 

TABLE 8.6.1 PRE-SET CPTICNS FCR THE 

BURDEN TABLE ClrtPUT 

MIA MAXIHUM NUMBER CF HYPOTHETICbL AGI'S ASSUMED 

FOR THIS PARTICULAR BUROEN TABLE OUTPUT, 

DEFAULT = 201 MAXIMUM i.30. 

HAG1 HYPGThETICAL AGI'S ASSUME0 FOR THIS PARTICULAR 

BURDEh TABLE OUTPUT, 

DEFAULT C IN 000'5 SI 0 4151617,8191101111 

1~,511.3rl4rlS017,S1201 

&*30 1*35+0 t 50 I100 

MAXIMUM NUMBER OF PERCENTAGES TO 8E USED IN 

Ass(IVING THE AMOUNT CF lTEPlZED DEDUCTIONS A3 A 

PERCENT OF AGI IN THIS PARTICULAR WROEN 

TABLE OUTPUT, 

DEFAULT = 41 MAXIMUM 6, 

HOED HYPGTHETICAL PERCENTAGES $CF AGI ASSUPEO TO 6E 

ITEMLZED DEDUCTIOhS FOR THIS PARTICULAR BUROEN 

TABLE OUTPUT, 

DEFAULT ( IN PERCENT) t Ot16t20125 

MIE MAXIMUM NuM8ER CF OEPENDENT EXEMPTIOluS TO BE 

ASSIJMED FOR THIS PARTICULAR 6)ROEN TAeLE OUTPUT, 

DEFAULT 3 u, MAXIMUM = Na LIBIT, 

IF THE USER ELECTS THE 2 OPTION FQR LOGIC SWITCH NUMBER 191 THEN 

THE DATA CAR0 DESCRIBED IN SECTION 8,6d3 MUST 8E SUPPLIED, 

THERE ARE NO RESTRICTICNS OTHER ThAN THCSE SPECIFIED Ih TAeLE 

8m6.1, 
THEASURY PERSONAL INDIVIDUAL INCOME TAX WOOEL. 27 JUN 78 8-20 

8.60Z.13. SPECIAL CCNSICERATIONNS. 

THE USER SHOULD t3E WARNED THAT TAX MODEL RUNS kHICH PRODUCE 

CCjRhECT REVENUE ESTIMATES OU NOT ALWAYS PRCCUCE CORRECT BUROEN 

TABLES. THIS IS DUE TG THE WAY IE( hHICh PLAh Y IS PROGRAMMED IN 

RELATICN TO PLAh X. 

WhEN LCGIC SWITCH 19 I3 SET EQUAL TO 2, A $BURDEN OATA CARO I3 

REQUIRED IMMEDIATELY FCLLOWING THE 3 99 1 CARC. THE DATA CARO 

SHOULD CONTAIN SBUROEh BEGINNING Ih COLUMN 2 AkD ANY OF THE 

VARIAfjLES FROB TAeCE 8.6.1 THAT ARE TO i3E MCOIFIEO OR REPLACED. 

AN EXAPPLE I8 PROVIDED IN SUBSECTICN 806.4, 

8.6.4.1. STATEMEhT OF EXAMPLE PROBLEM. 

A RESEARCHER kANTS TO EXAMINE THE IMPACT OF TPE TAX PROPCSAL IN 

EXAMPLE 3 FROM SUBSECTICN 8.3.3 IN MORE DETAIL. IN PARTICULAR, HE 

WANTS TO EXAMINE SPECIFIC SITUATIONS UNOER VAGYIhG ASSUPPTIGNS 

kITH RESPECT TO MARITAL STAfUSr NUPSER CF OEP�~DENTSI ITEMIZED 

OkOUCTION3t AN0 THE LEVEL OF AOJUSTED CHOS3 IhCOWE. IN AODITION, 

THE USER HANTS TO REPLACE THE 12,500 AGI hITh A 12,000 AGI AN0 

APPEVO A fO,OOO AGIO FURTHkRMORE, THE USER CCES NOT REGUIRE THE 

ZUX OF AGI ITEMIZED DEDUCTIONS OR WORE TH4N 2 CEPENOENT 

EXEMPTI‘UNS. THIS CAN aE PROVIOEO USING THE IF~PUT COURCL STREAM 

OF SUB$ECTION 8.3.3 MODIFIEO TO PRCDUCE EURCEIr TABLtS AS St’OkN IN 

THE SUBSECTION BELOh. 

6.6.4.2, INPUT ELEMENT FCR THE EXAMPLE PRGeLEP. 

VELTpIDN TPFSrTMOATA,,�NDL 

1 3 0 1234 

1 3 1BUROEN TABLES 

1 3 ZMIEIIMUM SO=S3500, MAXIMUM SD:S4500 
THEASL'RY PERSONAL IhOIVIOUAL INCOME TAX MUOEL, 27 JUN 78 8-2 1 
TREASURY PERSCNAL fEJDIVIOUAL INCOME TAX MODEL, 27 JUN 78 8-22 

8.7. SPECIAL TABULATIOhS. 

SiJ8HOliTINE TABOUT/V�R3 HAS DESIGNED TO SIMPLIFY THE PREFARATION OF 

TAX MGCEL RUNS REQUIRING SPECIAL TAbULATIONS kCT COVERED 6Y THE 

STANOARD TAX MODEL TABLES, ITS USE, ThEREFCR�, IS SPECIFIC TO THE 

TAX MOCEL BUT IT CAEi BE USED IN SIMILAR SITUATIOhS OUTSICE GF THE 

TAX MCCEL PROGRAM. TABCUT/VER3 WILL PERFORE, Th& FOLLCkIhrG 

FbNC T ICkS : 

(A) IT kILL OUTPUT A TWO DLPENSICNAL ARFiPY GF ANY 

SIZE IN TABULAR FORM* 

(e) IT ILL PROVIDE UP TO FIVE LI~ES CF TITLE 

CENTERED ABOVE THE TA8l.E. 

(C) IT WILL PROVIDE UP TO 100 COLUMNS CF CENTEREC 

CLjLUMN HEADINGS, 

8.7.2, USER PRCCEDURE. 

3UBROL;TINE TABGlIT/VER3, CF COURSE, DOE3 NOT PERFGRM THE ACTUAL 

TABULATION RUT ONLY OUTPUTS THE RESULTS OF TbE TABULATICN, ONCE 

THE TA@ULATIOh HAS BEEN COMPLETEOt THE LSER MAY FAvE IT CUTPUTED 

VIA ThE FOLLOkIhG CALLI 

CALL TABO~T(X,NR,~C,LHSTUerlSCALE) 

DESCRIPTLCN 

WHERE X IS A TWO DIMENSIONAL REAL ARRAY COhTAINNLhG THE 

RESULTS OF THE TABUbATIQN. ThE FIRST SUBSCRIPT 

CF X CORRESPOfUDS 713 ROWS AND TFE SECOtvD $&@SCRIPT 

CF X CORRE$POhDS TO COLUPhS, 

NR IS THE NUMBER OF ROWS IN THE TABLE. 
. 

TREASURY PERSONAL IhOIVIDUAl INCOME TAX Mama 27 JUN 78 8-a33 

Lh TUB IS N ARRAY OF SIZE h NHICH CGhT INS THE 

INTERV4l.S TO BE USED A3 ThE LEFT hbNO STUBS 

IN THE CONSTRUCTION CF TH� TAC?LE, 

ISCALE Is AN ARRAY OF SIZE hC WbICb CCFtTAIbiS A CCCE 

FGR ThE SCALE FACTOR TO @E APPLIED TO EACP 

CULUMN OF THE TABLE, ThE CGGES ARE: 

1 = NC SCALE FACTOR. 

2 = OIVIOE BY 1,000,

3 = OIVIOE BY 1,000~000. 

8.7,2,2. RESTRICTIGNS, 

IT IS ASSUMED ThAT EACH ROW OF THE ARRAY X CCRRESPONCS TC Oh� 

INTERVAL OVER A CONTINUCUS RANGE OF CLASSESi I.�. AGI CLASSESr TAX 

SIZE CLASSES, ETC. FURTHERMORE, IT IS ASSUPEC THAT THERE AWE NW-1 

SUCH IhTERVALS AND THAT THE NH-TH INTERVAL CChTAINS THE TOTAL OF 

ALL IhTERVALS FOR EACH COLUMN. 

8,7*t.,3. SPECIAL CCNSIDERATIUNS, 

EACH CALL TO SUBROUTINE TABCUT REQUIRES DATA CARES FCR THE TITLE 

Ab0 CCILUWN hEAOINGS IfvFGRhATIGN, THIS IS OESCRIeED IN TbE NEXT 

SECTICh. 

8.7.2.U, OTHER SUBPROGRAMS REQUIREO, 

SUBRO3llTINE HEAOIVER3. SUBROUTINE CENTERlVER3. FUNCTICh 

N�RHQR/VER3. 

8.7.2.5. ERROR RETURNS, 

IF ERRCRS ARE ENCONNTERED DURING ThE EXECUTIOh OF SUeRCbTINE 

TABOUT/VER3, THE FUNCTION NERROR kILL ATTEMPT TO PRCVIOE 

DIAGNCSTIC PRINTOUT FOR A SHORT DURATION, IF ThE ERROR FUNCTION 

IS SUCCESSFUL IN PRGVIOING DIAGNOSTIC PRINTCIITt IT hILL EXIT AND 

CONTINUE kITH THE NEXT CALL TO T4BCUT AS IF )uC PROBLEMS kEGE LVER 

ENCOUhTERED. 
, I 

THEASbRY PERSONAL IhDIVIDUAL INCOME TAX MUQEL. 27 JUN 78 8-24 

8,703. INPUT DATA, a 

EACH CALL TO SbBRGUTINE TABOUTiVER3 kILL CALL SUBROUTINE hEAD 

WHICH kILL EXPECT TITLE CARDS. ThE USER MUST SUPPLY AT LEAST ONE 

TITLE CARD AND MAY SUPPLY AS MANY AS FIVE TITLE CARDS FCR EACH 

TA8LE. IF MCRE THAN 5 TITLE CARDS ARE SUPPLIED, THE PR4CGRAM WILL 

SKIP THE REMAINNfNG TITLE CARDS Ah0 PRINTOUT TkE TITLf; CARD3 IT 

SkIPPEO, COLUMNS 1 72 OF A CARD MAY BE USEE FOR ThE TITLE, THE 

TITLE NEED hOT @E CENTEGEO SfM� THE PRCGRAP kILL PRCVICE THIS 

FUNCTICN, FOLLCWING ThE LAST TITLE CAR0 FCR A GIVEN TAeLE, AN 

@�OF CARD 1s GEQUIRED. FOR EXAMPLE, 

FIRST LINE OF THE TITLE FOR TA8LE 1, 

SECOND LINE OF THE TITLE FOR TABLE 1. 

THIRD LINE GF THE TITLE FOR TABLEl,

@�OF 

8,7,3,2. COLUMN HEADING CARDS, 

IMMEDIATELY FOLLOWING THE TITLE CARDS, THE USER VUST SUPPLY COLUMh 

HEAOIhG CARDS, THE COLUMN HEADINGS ARE TYPED 'CN A DATA CAR0 

BEGINNIhG IN COLUMN 1 AND MAY CONTINUE ION TC ~ODITIOhALOATP 

CARDS, AT THE END GF EACH COLUMN HEAOINGt ThE USER PUST TYPE A 

I/' AhD CONTINljE IMMEDIATELY kITH THE NEXT CCLbMN HEADING UIvLESS 

THE USER ~uISHESTO TERMINATE THE SCAN GF THAT OATA CARD FOR COLUMh 

HtiSDfhGS, Ih NHICH CASE ThE USER ENTERS A '?' IMPEDIATELY AFTER 

THE 1)'. Ah EXAMPLE FOLLGWS: 

CCLUPN l/COLUMN Z/CQLUMN 3lCCLUMN U/? 

COLUMN S/COLUMN 6/COLUMN 7lCOLUMh 8/CCLLE(k 9/7 

COLUMN lO/COLlAYN 12/ 

IF ThE PREVIOUS CALL TO TABOUT IN THE SAME RUIv HAS ALREADY 

8uPPLIEO COLUMN HEAOflvG CARDS AND THE USER hI$h�S TO EMPLOY THE 

ThE PGEVIGUS CCLUMN HEADING CARDS# HE MAY EhTER 

Ilu LIEU OF ENTERIkG THE SAME CQLUMIv HEACING CAR03 AGAIN, 
. , 

TWEASCIRY PERSCNAL INOIVIDUAL INCOME TAX MODEL, 27 JUN' 79 8-25 

I 

8.7.4, EXAMPLE RUN, 

8,7,4.1, IhPUf ELEREhT FCR EXAMPLE RCJrU, 
TREASURY PERSONAL IIVOIVIDUAL INCGME TAX HCQEL. 27 JUN 78 8-24 

IITLEYTABULATIU~OF INTERET EXPENSE IMPUThTIUbi 

%CHANGE NEWXZO, NEhY=O, NEWZ+OI %EN0 

TABULATION OF INTEREST EXPENSE DEDUCTION IPPUTATLCN 

(FIGURES IN MILLIONS CF DOLLARS) 

@ELF 

HOPE WRTGAGE INTEREST/CUNSUHER IlvTEHEST/IhVESTMNT IhTEREST/? 

OThEH INTEREST/TGTAL INTEREST/ 

PEhC ENOL 

*ADO CSLIST 
--------- 

TREASURY PERSGNAL INOIVIDUAL INCOME TAX MODEL. 27 JUN 78 8-2 7 

8,7m4,2. OUTPUT FOR EXAMPLE RUN. 

THE OUTPUT FCR THE EXAMPLE RUN ABOVE NGULD hALE THE FOLLCwIIvG 

GENERAL FORM, 

TAOULATION OF INTEREST EXPENSE DECbCTION IPPUTATIOlu 

(FIGURES IN MILLIONS OF GCLLAHSl 

hOME CCNSUPER IhLESTMNT CTHER 

MORTGAGE XNTEREJT IbTEREST IhTEREST 

INTEREST 

$ ******* - s Om 

$ 0. - S s000, 

5 5000, S 1OOOOm 

Ib IOOOOm $ 15000, 

3 15000. - s 20000. 

9 2OOOOm S 3OOOOm 

$ 30000, $ 50000m 

S 50000e - s 1OOOOOm 

S 1OOOOOm - $******** --------- -wm=-o--­ -m-w----. 

Taw 

TOT4L 

INTEREST 

a ******* - $ 0. 

3 0, - S 5000. 

$ SQOO, - 3 1OOOOm 

S 1OOOOm - S 15OdOm 

s 15OOUm m S 2OQOOm 

$ ZOOOOm 0 S 30000, 

S jOOOOe - S SOOOOm 

3 SOOOOm - S IOOOOO, 

s 100000, - %******** 

TOTAL 
TRE SIJRY PERQONAL IlUDIVIDUAL IICGME TAX MODEL, 27 1 

8.8, FILING URIT SIZE TABULATIONS, 

8.8.1. PURPOSE 

UN 7e 8-

t 

8 

SUEROUTINE FUSfZE WAS DESIGNED TO PROVIDE TABLLATICINS BY FILIhtG 

UNIT SIZE AhD ALL FILING UNIT SIZES OF THE OISTRIBUTIUh CF 

EXPANDED INCCME AN0 RETURNS AN0 TAX LIA8ILITV FOR PLAN X AND PLAN 

Ye IN AOOITICNi FUSIZE 4LSO PROVIDES THE PERCENTAGE DISTRIBUTIQ~

OF RETURNS AND TAX LIABILITY FOR EACH OF THE TAX PLANS. 

8.802, USER PRGCEDURE 

SUBAOIJYINE FUSIZE PERFORMS THE ACTUAL TABULATIONS AS HELL AS THE 

OUTPUT CF THE COMPLETED TABLES. CONSEbbENTLVr FUSfZE MUST BE 

CALLEO FOR EACH RETURN FOLLOMING THE CALCULATICN OF PLAN Y AN0 

ONCE AGAIN AFTER ALL RETURNS HAVE BEEN PRGCESSED, TP'E CALL IS A3 

FOLLOWS: 

CALL FUSLZE(FLAG,EYBrC�YBI 

kCIERE FLAG I3 AN INTEGER FLAG THAT MUST*­

SO WhEN TAX RETURNS ARE 8EING PROCESSEG 

=l WHEh ALL RETURNS HAVE BEEh PROCESSEC 

EYB 19 EXPINDED INCOME OR ANY OTbER INCOME CONCEPT 

FOR CLASSIFICATION PURPOSES 

CEYB IS USUALLY EXPANDED INCOME. HQHEvERi THIS 

MAY BE ANY OTHER VARIAeLE THPT THE USEfi 

WANTS TO TABULATE, 
TREASURY PERSONAL IFiOIVIOUAL INCOME TAX MODEL. 27 JUN 78 8-29 

8,8.2.2, RESTRICTIONS 

FUSltE PROVIOES 4 eREAKDOwN BY FILING UNIT SIZE FOR SINGLE 

PERSONS, MARRIED PERSONS, MARRIEO PERSCIUS NITb tpZp1344 AN0 5 OR 

MORE OEPE~DENTSIHEAD~OF~HQUSEHOLDAND ALL FILIhG UIvIT SIZES. 

8,8,2,,3, SPECIAL CCNSIDERATIONS, 

8.8.2.4, OTHER SUBPRGGRAMS REQUIRED, 

SUBRObTINE 'INOEX', 

8,6.2.5, ERRCR ROUTINES, 

NONE 

NONE, 

8.8.4, EXAMPLE RUN, 

8,8.4.1, IIvPUT ELEMEhT FOR EXAMPLE RUh, 

@ELT,IDk TPF%mTMDATA,,ENOL 

1 3 0 xxxx 

1 3 1EXAMPLE CF FUSIZE 

1 3 2OISTRIBUTION OF PLIINX 8 PLANY TAX BY 

1 3 3FILING UluIT SIZE 

@Eldo ENOL 

exGT PFx.COVERP 

19781978 

@A00 TMOATA 
. II 

TREASURY PERSONAL IhDIVIDUAL INCOME 

@ELT,IDL TPF%*CSLIST~rENDL 

@FCR,S PFX.HAIhZ,,MAIN2 

-58 

CALL FUSIZE(O,EYB~EYf3) 

-109 

CALL FUSLZE(lrEY8,EYB) 

@PACK PFX, 

*PREP PFX, 

@ADO PFX,XQT78 

$SAMPLE N'fEAAs1975, NRETSSOOOO, 

1 1 0 0 

@ADO TMOATA 

TITLEX 1978 LAh AT 1978 LEVELS 

TITLEYEXAHPLE OF FUSIZE 

$CHANGE NEWXSOr NEWYSOt NEWZSOr 

@�kO ENOL 

*ADO CSLIST 

@ASG,Ax STORE*ESTIMATES. 

@ELlrIDN STORE*�$TIMATES~AUNXXXX~,FIk 

TAX MUCEL. 27 JUtv 78 8-20 

NLEV=1978, SEND 

1 

SEkO 

@AOCrD 14, 

*END FIN 

eXQT PFX.UPDATE 

@A00 gfORE*ESfIHATES,AUNXXXX 

@ELf,IDN STGRE*ESTIM4TES,DIRECT~R~,~F~N 

@AOO,D 16. 

*EhO FIN 

@FREE StORE*ESTIMATES. 
1 

2 

3 

4 

5 

6 

7 

8 

9 

. c 

THEASCIRY PERSONAL IhOIVIOUAL INCOME TAX WOEL. 27 JU~7e 8-31 

8.8.4.2, 13UTPOT FOR THE EXAMPLE RUN, 

THE OHPUT FCR THE EXAMPLE RUN IS TGO LARGE nc BE REPRQCUCED HERE. 

HGNEVEG, THE FOLLOhING ITEMS ARE TABLILATED FGFi EACH FILIhG UNIT 

SIZE. 

CGLUMN ITEM 

.)-.)-.)a *“1 

CEYB 

PLANXI RETURN3 

PLANX, X DISTRIBUTI~Lh CF RETURNS 

PLANX, TAXAX 

PLANX, X DISTAIBUTICh CF TAXAX 

PLANY, RETURNS 

PLANY, Z OISTRIBUTfCh CF RETUHhQ 

PLANY, TAAAY 

PLANY, X OISTRIBUTICh CF TAXAY 
TREASURY PERSONAL IF(O1VIDUAL INCOME TAX MGCEL, 27 JUN.78 8-32 

8,9, SUBROUTINE DEBUG. 

THIS SLBPROGRAM IS DESIGNED TO ALLOW THE USER TO ISCLATE OIFFERENCES IN TAX LIAeILITY CALCULATED UNDER PLIIV X Ah0 UNDER PLAh Y 

lt1THOUT THE kORK INVOLVED IN NRITING A SP�CIAL PURPOSE OEBUGGING 

OUTPUT SUBPRCGRAH. 

SUBRObTIIUE DEBUG MUST BE CALLED ThICE PER TAX RETURN, OhCE FOR THE 

PLAN X CALCULATION AN0 CNCE FOR ThE PLAh Y CALCULATICN. THE 

FORMAT FOR THE CALL 13-0 

CALL DEBUG(NPLAN1 

WERE NPLAIV IS AN 

01 FOR 

12 FOR 

RESTRICTIONS 

NUN� , 

INTEGER wwE VALUE 

PLAN X 

PLAN Y 

8*9.2,),t. SPECIAL CONSIDERATIONS, 

SUaROliTINE DEBUG IS DESIGhED TO BE EHPLCYED AFTER THE CALCULATION 

OF PLAN X AND PLAh Y TAX, IF OEBUG IS CALLED hIThOUT 

RECALCCLATING PLAN X TAX, THE USER MAY FINO ThAT SOWE CF THE 

INTERMEDIATE VARIABLES LISTED IN TPE CUTPUT CCNTAIN VALUES THAT 

ARE NGh-SENSICAL. IN TbIS SITUATION, THE NCb-SEhSICAL VALUES ARE 
c 

TREASURY PEHSCjhAL IbOIVIOUAL INCOME TAX MODEL, 27 JUFC 78 8-33 

THE RESULT OF TbE LAST PLAN Y CALCULATION FCR THAT VARIABLE(THE 

LAST CALCULATION MAY MOT hAVE B��k TH� PREVIGLS RETURN). hENCE, 

ThE USER MUST Kkah THE TAX MOOEL kELL AN0 EXEKCISE CAUTICN hHEN 

USING SUBWCUTIhE DEBUG hITHOUT HECALCULATING PLAN Xm 

8*9*2mUa OTHER SUBPROGRAMS REQUIRED, 

NONE 

NONE. 

NONE 
? 

TREASLRY PERSONAL INDIVIDUAL INCOME TAX MODEL, 27 JUN 78 8-34 

SUPPOSE THAT THE USER IS INTERESTED IN EXAMIkIrUG THE DIFFERENCE 

BEThEEN THE PLAN X AND THE PLAN Y TAX Ch THE FiETURN NUMBER 335. 

IF THIS I3 TO BE DONE AT 1978 LAW ClNO LEVELS# THE IEtPUT CONTROL 

STR�AM WOCll.0 APPEAR AS SHOWN BELQ~(, 

@ELT,IDN TPfS.TMDATA,,ENDL 

1 3 0 xxxx 

1 3 1EXAMPCE OF DEBUG 

1 3 ZCALCULATION OF TAX LIAeILIfY UhDER PLANX & PCANY 

1 3 3 

@ENC ENOL 

@XQT PFX,COVERP 

19781978 

@ACO TMDATA 

*ELt#IOL TPFI.CSLI3T,rENOL 

QFOR,S PFX,MAINZ,,MAIN2 

a5a IF(RETN0 .EQ, :335)CALL OEBUG(1) 

-58 

IFCRETBO eEQ0 335lCALL DEBUGCZ) 

@PACK PFX, 

@PHEP PFX, 

oAOC PfX.XQT78 

%SAMPLE NYEAR=1975, NRETSSOUOO, NLEV=1978, SEN0 

1 1 0 0 1 

@ADD TMOATA 

TITLEX 1978 LAW AT 1978 LEVELS 

TITLEYEXAMPLE OF DEBliG 

$CkANGE NEWXZOr NEWYSO, NEWZSOp SEND 

@�NO ENOL 

@A00 CSLI3T 

OASGtAX STGR�*ESTIMATESe 

@ELT#IDN STCAE*ESTIMATE%~RUNXXXX,,FIN 

@APOtO 14, 

@ENC FIN 

oXGT PFX.UPOATE 

rADC STCRE*ESTIMATES.RUNXXXX 

eELT,IDN STOAE*EST~.flATES.DIRECTGRY,,FIN 

eAOC,O 16, 

OEhC FIN 
, TREASURY PERSONAL IhDIViDUAL INCOHE TAX MODEL. 27 JUN 78 8-35 
TREASURY PERSONAL IHDIVIDUAL INCOP� TAX MODEL. 27 JUN 78 8-36 

8.9.4.20 OUTPUT FCR EXAMPLE RUN. 
TREASURY PERSGNAL INDIVIDUAL INCOME TAX MODEL. 27 JUN 7e 9- 1 

9, TAX MGDEL DIAGNOSTIC MESSAGES, 

THE EGROR CHECKING FEATURE OF THE TAX MODEL PRCGRAM HAS BEEN 

REMUVED EXCEPT FOR CERTAIN CRITICAL SITQATICNS. THE OIAGONISTIC 

M(ESSAGES GEhERATED IN THESE SITUTATIONS ARE PRESENTED IFC TABLE 

9.0, 

IN ADOITION, SUBROUTINE 'HEAD' CONTAINS AN kUTOMATIC TRACE 

FEATUAE, IF ANY OF THE DESIGN LIMITATLGNS CF SUBRQUTfkE 'HEAD' 

ARE EXCEEDEb, THE PROGRAM WILL PROVIDE A TRACE OF THE KEY 

VARIA8LES OVER TH� NEXT F�W ITTERTATIONS, IC~CEThE TRACE IS 

COMPLETEr CONTROL HILL RETURN TO THE CALLING PROGRAM IF POSSIBLE, 

OTHERhISE THE RUN hILL TERMINATE, 
9-2 

TABLE 9.0: TAX MODEL DIAGNOSTIC PCSSAGES 

=-SUBRCUTINE MRATES-m 

**NOTE** MAXIMUM NUMBER OF CHANGES ACCEPTED 

**WARNING** RATE TABLE IS FULL 

PROGRAM IS ABLE TO CONTINUE 

-SUBROUTINE SCH�DTAX SCHEDULE GENERATION: ILLEGAL REQUEST; 

SCHEOULE 2 REQUIRES SCFEDULE 1 AND SCHEDULE '2 REQUIRES 

SCHEDULES 2 8 13s 

T4X SCHEDULE GEN�RATION; AUTOMATIC GEhERe CF SCHED. 3 

CREATES TOO MAhY BREAKPOINTS; < 49, 

-SUBRGUTINE HEAD-­

TITLE TRUNCATED AT THE EN0 OF THE 5TH LINE 

THE FCLLOMING CAROS hERE SKIPPED: 

COLUMN HEADINGS TRUNCATED AT THE EN0 OF THE 

100 TH COLUMN 
TREASbRY PERSCINAL INDIVIDUAL INCOME TAX MODEL. 27 JbN 78 10-1 

10, GLG3SARY OF VARIAf3LE NAM�S IN THE TAX MrOCEL, 

THE TAX'MGOEL SOURCE PRCGRAM CONTAINS GVER 400 VARIABLE NAMES. Ik 

THE GLCSSARY THAT' FCLLCkS, EACH VARIAULE NAPE.IS PRESENTED AS WELL 

AS A DESCRIPTICIV CF THE CONTENTS GF ThE VARIAeLE, 

THE USER kfLL FINO THAT SOME VARIA6LE NAMES APPEAR MGRE THAN ONCE 

IN THE GLOSSARY. ThIS MEANS THAT THE VARIABLE I9 'LGCAL' PND THAT 

ITS' CCNTENTS DIFFER AT OIFFERENT POINTS IN TkE PROGRAM. WHEN 

THIS SITUATION CCCURS, THE OESCRIPTIGN CF TFE VARIABLE hA3 BEEN 

EXPANOED TO INCLUDE THE LOCATION CF THE VARIABLE WITHIh THE TAX 

MODEL PROGRAM. AT THE SPECIFIED LCCATION IN TNE TAX MOOEL 

PWQGRAC, THE VARIABLE WILL CONTAIN TH� OATA GIVEN IN THE 

DESCRIPTION OF THE VARIABLE, AT ANY ETBER LCCATION 'CTHER THAN THE 

SPECIFIED LGCATICN, TFE VARIABLE MAY CCNTAXN SCME OTHER OATA. 

SOME CF THE VARIA6LE NAMES PRESENTED IN THE GLCSSARY HAVE A SET OF 

PARENTHESES TO THE RIGHT OF THE VARIAULE NAME. THIS INOICATES 

THAT TCIE VARIAeLE NAME IS AN ARRAY OF STORAGE LOCATICNS. 

FINALLY, SOVE VARIARLE NAMES IN THE GLOSSARY CCNTAIN Ah 

ASTERISK(*) IN THE SPELLING OF THE NAME, NCNE OF THE VARIA8LEs lh 

THE TAY MODEL PGOGRAM HAVE AN ASTERISK IN ThEIR NAME BEClsU8E THE 

ASTERISK IS JUST AN ABBREVIATIOtd DEVICE USED IN THE GLOSSARY. IF 

A VARIAULE NAME IN THE T4X MOOEL PRaGRAP COIUTAINS AN (X' kHERE THE 

ASTERISK APPEARS IN THE GLOSSARY NAMEt THEN ThE CONTEhT3 QF THE 

VARIABLE ARE A3 DESCRIBED IN THE 6LaSSPRY. TbE 'X' INOICATES THAT 

THE OATA STORED IN THE VARIABLE WAS CALCULATED UdING THE TAX 

PARAMETERS FROM THE PLAN X TAX PROPOSAL. THE SAP� INTERPRETATIUh 

APPLIES khEN A 'Y' QR A '2' APPEARS IN PLACE CF THE ASTERISK. IF 

THE VARIABLE NAME DGES NOT CONTAIN A 1x1, OR IY', OR 'ti rk PLACE 

OF THE ASTERISK, THEN ThE VARIABLE STILL CONTAINS THE DATA 

DESCRIBED IN THE GLOSSARY. THE ABSENCE OF A 'XI# 'Y', CR '2' 

INOICATES THAT THE VARIPQLE IS U3ED IN TH� CALCULATIOh OF ANY OF 

THE THREE PossIeLE TAX PLANS. 
TREASURY PERSONAL INOIVIOUAL INCOME TAX MODEL. 27 JUh 78 10-2 

*** GLOSSARY OF VARIABLE NAMES *** 

PROGRAM: VER6*HQDEL=PRCGRPM 

VARIAeLE 

NAVE 

A( 1 HCRKING STCRAGE (SUB. TA81, TAB2 AND EXTEND1 

A¶( I STORAG� FCR THE EXlEhOEO RESULTS CF TABLE 1 

AZ( I STORAGE FOR THE EXTENOEO RESULT3 CF TABLE 2 

ACGCT INDICATOR FOR THE PLAN THAT MItvIPIZES TAX 

(1'PLAN y, OZPLAN 21 

AD( I STCRAGE FOR THE AGGREGATE SUMMARY BY TYPE GF 

DEDUCTION (3UB. TAB3 AN0 TAB41 

AOJEI AOJUSTMENTS TO GROSS EARNED INbGPE IN CCMPlrTING 

NET EARNEO TAYABLE INCOME, 

ADJST AOJUSTMENTS TO INCOME ALLOhED (1977 - ON1 

ADJUST TGTAL ADJUSTMENTS TO INCGME, REPCRTED 

AON*( 1I ALLOWABLE DEDUCTIONS, CGNTRIBUfIChS 

AON*(t) ALLOhAeLE OEDUCTIONS, INTEHE$T EXPENSE 

ADN*(>l ALLOMABLE DEOUCTIONSt TAX EXPENSE 

AON*(4l ALLO~ABLEDEDUCTIONS, MEDICINE Ah0 DRUGS OVER 1 

PERCENT AGI 

AON*(S) ALLOWABLE OEOUCTIONSr MEDICAL LNC DENTAL OVER 3 

PERCENT AGI 

AON*(6) ALLOhABLE DEDUCTIONSr MEDICAL INSbRANCE PREfirIlJMS 

AON*(7) ALL0kABl.E OEOUCTIONS, MISCELLAhECbS 

AON*(8) ALLOhAt3LE DEDUCTIONS, CASUALTY CR TkEFT LOSSES 

AGEOE NUMB�R OF AGED EXEMPTIONS 

AGU I AGI CLASS STUBS FOR INDEXING 

AGIH( 1 HIGH OPTION AGI CLASS BREAKPOIhTS 

AGIL( I LOh OPTION AGI CLASS BREAKPOINTS 

AGIO( I PRE 1975 AGI CALSS eREAKPCINTS 

AGITCT ACCUMULATED TOTALS FGR TABLE 6 

AGL* ADJUSTED GROSS INCOPE 

ALA@( ) AN ARRAY CGNTAINNING THE LABELS FGR THE BUROEN 

TABLE PRINTOUT (SUB. 8URSET) 

ALIMtvY ALIMONY PAYMENTS 

ALTTAX TAX SAVINGS FROM THE ALTERNATIVE TREATMENT CF CAPITAL 

GAINS. ALSO TAX BEFORE CREDITS MOEH THE ALTERNATIVE 

TR�ATMENT CF CAPITAL GAINS. 

ALwOEC ALLOhABLE DEOUCTIONS UBOER PLAh Y 

ALwEx ALLOkABLE EXEMPTIONS UNOER PLAh Y 

AS( 1 STGRAGE FOR THE SChEOULE QUMMAGY BY TYPE OF 

DEDUCTION (SUB, TA63 AN0 TAB41 

A01 I~VITIAL AMGUNT of INOCME S.T. T~ELDERLY CREDIT 
TREASURY PERSONAL IIUDIVIDUAL INCOME TAX MODEL. 27 JUN 78 1093 

*** GLOSSARY OF VARIABLE NAME3 *** 

PROGRAM: VERb*MCCEL-PROGRAP 

AN ARRAY FCR CONSTRUCTING THE SCLRCES LIF IhCCFE 

FCR TAf3LE 3 OUTPUT. 

TAX SAVIEtG3 FROM INCCME AVERAGIkG 

WORKING STORAGE (SU8, TAdl AND EXTEND) 

NUP6ER OF BLINO EXEMPTIONS 

BLANK CHARACTER 

THE LITERAL BLANK (CCVERP) 

STORAGE LOCATION OF ThE IhPUT BLCCK 

BALANCE CF MEDICAL INSURANCE PRECIUHS 

1)UPUTTED TAX BRISCKET (9UB. MRATEs) 

&OFKING STCRAGE (Sue, TAB11 

CEhTER ARRAY FOR A CGLUMN ttEADLhG(SUB. HEAC) 

ChILO AWAY FROM HOME EXEMPTIONS, 

ChILD AT HCME EXEMPTIONS. 

CAPITAL GAINS, PERCENT EXCLUSDCN 

CAPITAL GAINS, MAXIMUM TAX RATE 

CAPITAL GAINS, MAXIMUM YEARLY LOSS 

CAPt(4) CAPITAL GAINS, LOSS OFFSET CONVEhTICN 

CCCR CHILO CARE CREDIT 

CFTIhC (ADJUSTED) FAMILY TOTAL INCOME. 

CGAGI* CAPITAL GAINS OR LOSSES IN AGI 

CGDSO CAPITAL GAINS DISTRIBUTIONS NOT REPORTED Olu 

SCHEDULE 0, 1/2 OF THCSE GAI-NS 

CGYA* AMGUluT OF FULLY SHELTERED CAPITAL GAINS 

CHAhGE AGGREGRATE TAX REVENUE CHAkGE 

CHOG AN ARRAY CONTAINNING THE COLUMh FEAGINGS 

F'CR A SPECIAL TAB (SU8, TABOUT) 

CHILDC CHILD CARE EXPENSE 

CHTIhC (ADJUSTEO) HOUSEHOLO TOTAL INOCNE. 

CLIVI1 CAPITAL LCSS LIHITATIGNi SAME AS CAP(3) EXCEPT 

FOR MARRIED fILING SEPERATELY kHC MAY HAVE > 

0,50*CAP(3) UNDER CERTAIN CONOlTIGN3. 

CONVtif THE AMOUNT OF LONG TERM GAINS TkAT ARE COhVERTED 

TO SHORT TERM GAINS 

cpr POINTER TO ChARACTER I)u EACH GRCLP CF 9 

9 CHARACTERS (SUB, HEAD) 

CR 1 ELDERLY CREDIT, TAXPAYER 

CRi? ELD�RLY CREDIT, SPOUSE 

CR3 ELGERLY CREDIT, FGR TPE AGED SPCLSE 
THEASUPY PERSONAL INOIVIDUAL INCtlME TAX MGDEL, 27 JUN 78 LO-u 

*** GLOSSARY OF VARIAdLE hAMES *** 

PROGRAM: VER6*MCDEL=PGGGRAM 

VARIABLE 

NAPE ---m~mw-----m-om- DE$CftIPTION ---omo-m-m-m---mmw 

CRDN( 1 DATA CARD NUPBER, ACTUAL 

CSTUR CCLUMN HEADIhGS FOR CLASSIFIER STUB3 

CUM CUMULATIVE PERCEBTAGE 

O( 1 ARRAY CONTAI~INGTHE MAPPEDIN TAX HETURhi DATA 

o* TOTAL DEDlJCTIONSr EITHER ITEMIZEC OR STANQARO 

OATA* A DUMMY STORAGE LOCATION FCR OAT1 TRANSFER TO 

3Uds TXCALC 

UC*(11 DIVIDENO CREDITt ABSCLUTE MAXIMUP 

DC*W DIVIDEND CREDITi AS PERCEIUT OF DIVIDENDS 

OC*(3) DIVIDEND CR�DIT,. A3 PERCEkT UF TAXAELL INCCWE 

DE*(ll DIVIDENO EXCLUSION, SCHEOULE 1 

DE*(Z) DIVIDEND EXCLUSION, SCHEDULE 2 

OE*(31 DCVfDEfVO EXCLUSION, SCHEDULE 3 

OED* TCTAL ITEMIZED OR STANDARQ OEOLiCTIONS 

OEDL( I LAeELS FOR PRXNTQUT Qf THE DEOUC'IION MATRIX 

OEF( 1 ARRAY CONTAINING THE COMPONENTS CF EXPAtJOEO INCOME 

DEFMTX DEFERRED MINIMUM TAX 

DELTA PERCENTAGE CHANGE IN TAXES 

OEPNE NUMBER OF OEPENOENT EXEMPTIONS 

DEXCL DIVIDEND EXCLUSION 

UISALk DEDUCTION FROM MAXIMUP INGCME 8ASE FUR TAXPAYERS 

UNDER 62 kHO QUALIFY FOR ELDCR CCFPUTATION, 

OMf 3 FLAG FGR MARRIED FILING SEPERATE (MFS=O,Sr 

ETkERHISE 1.0) 

OM*( 1 DEDUCTION MATRIX 

ON 1 DEDUCTIONS CLAIMED, CCNTRIBUTZCbS 

DN2 DEDUCTIOhS CLAIMED, INTEREST EXPENSE 

ON3 DEDUCTIONS CLAIMED, TAX EXPENSE 

ON4 D�DUCTfOlJS CLAIMED, MEDICINE AhD CHUGS t 1 

PERCENT AGI 

ON5 DEDUCTIONS CLAIMED, MEDICAL AN0 CENTAL + f 

PERCENT AGI 

DNa DEDUCTIONS CLAIMED, FULL rJEDICAL INSURANCE 

PREMIUM 

ON7 DEDUCTIONS CLAIMED, MISCELLANGCUS 

DNt3 DEDUCTIONS CLAIMED, CASUALTY CR TFEFT LCSSES,

os* NaCaEa 

EARN GROSS EARNEO INCOME 

EAHNCR �ARNED INCCME, FOR EARNED INCOFE CREDIT 
-- 

TREASURY PEkSGNAL INDIVIOLIAL INCOME TAX MOOEL, 27 JtN 78 10-5 

*** GLOSSARY OF VARIAeLE NAMES *** 

PRCGRAM: VERb*MGDEL-PROGRAN 

VAR I A8LE 

NAPE 

ECMAX ELDERLY CREDIT, MAXIMUM, 

ECH*( 1) EXEMPTION CREDIT, 8 ALLOhAhCE, TAXPAYER 

ECR*C2) EXEMPTION CREDIT, S ALLCwAhCEr AGED 

ECH*(3) EXEMPTION CREOIT? S ALLOhANCE, 8CIND 

ECR*(U) EXEMPTION CREDIT, $ ALLOhAhCEt CEPENDEhT 

ECR*(6) EXEMPTIOh CREDIT, INCLUSICh OF TAXPAYERS 

ECH*(7) EXEMPTION CREDIT, INCLUSIOIU OF AGED 

ECH*(8) EXEMPTION CREDIT, INCLUSICh OF BLINO 

ECR*(9) EXEMPTION CREDIT, INCLUSICN CF OEPEhDENT 

EIC EAHNED INCCME CREDIT 

ELOCR ELDERLY CREDfT, 

EMAX MA%IMUH MARGINAL TAX RATE ON EARhED INCGME 

EPCR TCTAL VALUE CF EXEMPTION TAX CRECITS 

ERN EARNED IhCOME FOH ELDERLY CREOIT CALCULATICN, 

ET1 EARNED TAXAaLE INCOME 

E*(l) EXEMPTIONS, DOLLAR ALLOkANCE, TAXPAYER 

E*(2) EXEMPTIONS, DOLLAR ALLOWCE, AGED 

E*(3) EXEHPfIONSr DOLLAR ALLOWANCE? BLIkD 

E*(U) EXEHPTIONS, DOLLAR ALLCIHANCE, GfPEhOENT 

E*(b) EXEMPTIONS, INCLUSIOh OF TAXPAYERS 

E*(7) EXEMPTIOhS, INCLUSION OF AGED 

E*(8) EXEMPTIONS, INCLUSION OF 6LINU 

E*(9) EXEMPTIONS, INCLUSIQh GF OEPENGEhT 

EXCESS EXCESS ITEMLZED DEDUCTIONS 

EXEM TOTAL VALUE Of EXEMPTICNJ 

EXLCG EXCLUDE0 LCNG-T�RM CAPITAL CAIhS 

EX* N.C.E. 

F4972 CODE FOR FORM U972 SPECIAL 10 YEAR AVERAGItvG, 

LUMP=SUM TAX. 

FACTGR MULTIPLICATIVE FACTOR (SUB, MAATES) 

FIFTH 115 PR�FERENCE INCOME FROP PREVLCUS FIVE YEARS, 

FMSTZE SIZE aF FAMILY TO HHICH TAX UNIT maw. 

FNt TOTAL NUMBER OF EXEMPTIONS 

FNOSvl ' N.C.E. 

FSYEAR YEARLY FOOD STAMP eaNus VALUE(FCR UNIT WITF HEAD 

CF HOUSEtiCLDl. 

FTPEh FULLY TAXABLE PENSIOkS 

FUrV DESCHIPTION OF THE FliFiCTItNS (IF EACH LCGIC SkITCH 

FLGSZ FILING UhIT SIZE, 
TREASURY PERSORAL INDIVIDUAL INCCHE TAX MODEL. 27 JbN 78 10-6 

GO GROSS DIVICEEtDS 

GPNSZ (ADJUSTED) GOVERNMENT PENSIONS, 

GRAND ACCUMULATE0 TOTALS FCR TABLE 6 

HAGI HYPOTHETICAL ADJUSTEU GRUSS INCCPES FOR 

THE BURDEN TABLES (SUB, BURSET) 

HOED HYPOTHETICAL ITEMIZED OEDUCTIOhS AS A 

PERCENT OF 4GI FOR THE BURDEN TA8LE3 

(8U8. BURSET)

BMIE HOME MCQTGAGE INTEREST EXPENSE, 

HMSTAT TENURE 

HOSOTX SOCIAL SECbRITY 8 RAILROAO RETIREMENT,DISA= 

BILITY AN0 SURVIVOR EMPLOYEE TAX, HEAD CNLY 

HSEF HEAO SHARE OF SELF=EMPLOYED FARP INCOME(SEF1 

HSENF HEAO'S SHARE OF SELF-EMPLOYED NCh-=FARM (BUSINESS) 

INCOME (SEIUF)

HS3HTX SOCIAL SECURITY L RAILROAD RETIREM�NT HEALTH 

INSUHANCE EMPLOYEE TAX, HEAD QhLY, 

hWAGES HEAD'S SHARE OF WAGES, 

10-9 AMCIUNT OF CORE STORAGE REQOIREO FCH TABLES 1 

THRU 7A 

IA LOGICAL UNIT FROM WHlCh THE A ELCCK WILL BE 

INPUTTED 

IA INDEX FOR THE HAGI (SUB, BURSET) 

IALT INOICATOR FOR ALTERNATIVE PLAN 2 

I8 LOGICAL UNIT FROM HHICH THE 6 @LCCK HILL BE 

INPUTTED 

I8 8EGIhNING LOCATION IN AN ARRAY READ OR MRITE 

I8P POINTER TO THE RECORD TO BE TRANJFERED 

ICTl TOTAL NUMBER OF PHYSICAL RETURIUS READ FROM THE 

SAMPLE 

ICTZ TOTAL NUFBER Of PHYSICAL RETURNS USED PO 

CONSTRUCT THE OUTPUT 

ICT'J TOTAL NUMBER Of PHYSICAL RETURNS NOT USED IN 

THE CONSTRUCTION OF THE OUTPUT Ch,C.E,I 

ICT4 NoCmEr 

ID IDENT NUPBER 

ID INOEX FOR OEOUCTIONS AS A PERCENT OF ACI 

(91rBo 8URSETl 
TREASORY PERSONAL IIUOIVIDUAL INCCME. TAX MODEL, 27 JL;N 78 10*7 

*** GLOSSARY OF VARIABLE lrAMES *** 

PROGRAM: VER6*MOD�L=fRCGRAP 

IDED* TYPE OF OECUCTION IhOICATCR (I=ITEMIZE, 

STANDARD) 

IDIP DISPLACEMEhT INDEXES (SU13. LSKLrT) 

IDUM DUMMY ARRAY EQUIVALENCE0 TO PLANL TITLE, 

IE ENOfEtG LOCATION IN AN ARRAY REA6 CR hRITE 

IE IbGEX FOR THE NUMBER CF DEPENOEhl EXEMPTIChS 

EXCLUOING TAXPAYER EXEMPTIONS (SLB. BUR9ETI 

AN ARRAY CCNTAINNING THE SCALE FACERS 

(SUB. TAt)OlrT) 

IN8 AN ARRAY CONTAINNING THE REPETITICN FACTORS 

1-10 (SUB. TAeauT)

INDICATOR FOR THE MAGNITUDE OF TbE TAX ChAFtGE ( 

1 IS c= lX, a IS > 1%)

TRANSFER STATUS WORD FOR BLOCK A 

TRANSFER STATUS NOR0 FOR BLOCK B 

INOEX, FROM THE INDEX FUNCTION 

IFtDfCATOR FOR IN8ERTION, DELETICh, ETC IN SUB. MRATES 

1)uPUT LABEL, YEAR OF THE DATA @bSE 

INPUT LABEL, YEAR OF THE MAPIN 

IFtPUT LABEL# NUMBER OF WORDS PER RECUR0 

INPUT LABEL, NUMBER OF RETURN8 Ih THE SAMPLE 

INPUT LABEL, NUMBER OF BLOCKS PER REEL 

INPUT LABEL, NUM8ER OF RETURNS BY SAMPLE CLASS 

INPUT LABEL, ALPHANUMERIC DESCRIPTIGN CF TFE 

CONTENTS OF THE FILE. 

INLCG INCLUDED LONG TERM GAIN3 

INVIA INVESTMENT INTEREST EXPENSE ALLOkEO. 

INVIT INVESTMENT INTEREST TGTAL. 

INVY INVESTIJENT INCOME. 

IP PAGE NUMBER 

IPAGE PAGE NUMBER 

IPT POINTER TO CHARACTERS IN THE Z ARRAY (Sbt3. HEAD) 

IR�C( 1 ARRAY FOR STORING ONE RECORO 

IS SAMPLE INDICATOR SUBSCRIPT (ltlQb8 SUB SAMPLE, 

2~1970DRUM FILE, 301970 SUB 8ApFLLt)

IS INOEX FOR TAXPAYER AN0 9PGU3E EXEPPTIONS 

(SUB. BURSET) 

ISCALE AN ARRAY CCNTAINNING THE SCALE FACTCRS 

FCR ThE SPECIAL TAB (SUB. TABGUT) 
TREASURY PERSONAL IhDIVIDUAL INCOME TAX MODEL. 27 JllN 78 10-8 

ISH PAGE SUBSCRIPTS FOR TAHLE 1 AhC Z LCGIC SalTCP. 

ITEST INDICATOR THAT TH� CURRENT TAX RAT& SCHEDbLE ENTRY 

IS A DUPLICATE 

ITXB INDICATOR FOR PRESENT TAX STATUS (ItTAXARLE, 

2:haIk~TAXABLEl 

IZ( 1 INOEXES FOR CALCULATIhG SCI FIGlJFiES 

J VARIOUS USES 

JA SUBSCRIPT FOR THE 54 CATEGORIES CF ARRAY AD 

JH SUBSCRIPT FOR THE 54 CATEGORIES CF ARRAY AS 

JO SUBSCRIPT FOR TYP� OF OEOUCTIOh (1=ITERIZE, 

ZtSTANOARDI 

JDJS PAGE SUBSCRIPTS FOR TA8LE 33 AND 4 LCGIC SkITCPES 

JMAX NUMBER OF CHANGES IN THE RATE SCkEDULE PINUS CNE 

JMIh STARTING AGI, SCHEDULE, DEOUCTICh CELL GF THE 

54 CAT�GORIES 

JS SUf3SCfIPT FOR THE TYPE OF SCHEDULE (1-3) 

JT SUBSCRIPT FOR THE 28 CATEQGRIES CF ARRAY St AND S4 

JX SUBSCRIPT FOR THE 54 CATEGORIES Ik TABLE l-AN 1A 

JY SUBSCRIPT FOR INCOME OR AGI CLASSES (1-101

JZ SU~JSCRIPT FOR THE 54 CATEGGRIES IN TABLE 3 

KD*(ll GENERATED DEOUCTIONS, hEk CATEGORY hUMBER 

KOf(21 GENERATED DEDUCTIONSr NUFJBER OF CATEGORIES TG 

BE CGMBINEO 

GENERATED DEDUCTIONS, SUBSCRIPTS CF TH� 

CATEGORIES TO El� COHBINEO 

KPT POINTER TO THE LA31 CCLUWh POSITICN GF CHDG 

kH�RE CHARACTERS k�RE INSERTED (She, HEAD) 

Ll SENSE LIGHT 1 (l=EOF, ZSCOhTINLE READ OF TAX 

FILE) 

LZ SENSE LIGHT Z (l=FILE PREVIOUSLY CLCSED, ZSFILE 

PREVIOUSLY CPENED) 

THE VALUE CF LUGIC SkITCH 19. 

LABEL FOR EACH VARIARLE ON A RETLFN 

A VARIABLE WHICH IS SET EQUAL TC NPL AND RESULTS 

IN THE EXECUTION OF THE APPROPRIATE SECTIONS 

Of TXCALC FOR THE YEAR OF THE TAX LAW SPECIFIED 

8Y NPL 

LB POINTER TO THE LAST NCN-BLANK CHARACTER IN A GROUP 

OF 9 ChARACTERS (SUB. hEAC) 
TREASURY PERSONAL INDIVIDUAL INCOME TAX MODEL. 27 JUN 78 10-9 

VARIABLE 

NAPE 

LOGIC(11 

LOGIC(Z1 

LOGIC(3) 

LOGIC(4) 

LOGIC(S1 

LOGIC(61 

LOGIC(7) 

LOGIC (8 1 

LOGIC(91 

LOGIC ( 10 1 

LOGIC ( 11) 

LOGIC ( 1a I 

LOGIC (1.3) 

LOGIC(14) 

LOGIC(l51 

LOGIC ( 16) 

LOGIC(l71 

LOGIC(l8) 

LOGIC(19) 

*** GLOSSARY OF VARIABLE NAPES *** 

PROGRAM: VER6*WDEL=PRCGRAM 

LABELS FGR PRINTOUT CF THE MISC TAX PARAMETERS 

LOGIC INDICATOR FOR THE APPLICATIOh GF FLGCRS 

Ab0 CEILINGS tOSNO FLOORS OR CEILINGS, 

l~FLOOR8AND CEILINGS)

VARIABLE FCRMAT FGR THE ClrRRENT LINE (SUB, TABOUT) 

VARIARLE FGRMAT FOR THE UNDERLIkE (SUB, TA8GUT) 

VARIABLE FORMAT FOR THE TOTAL LIhE (SUB. TA@OUTl 

THE TOTAL NUMBER OF LINES PRINTEC 

(SUB. TABCUT)

LOGIC SWITCH, R�SERVED FOR FUTURE USE 

LOGIC SWITCHi RESERVED FOR FUTURE USE 

LOGIC SWITCH, RE3ERVEO FUR FUTURE USE 

LOGIC SNITCH# CONTROLS READING CF LABELS FOR 

OISPLAY OF A RETURN 

LOGIC SWITCH, RESERVED FOR FUTURE USE 

LGGIC SNITCH, RESERVED FOR FUIICRE USE 

LOGIC SwITCHi CONTROLS THE CLA$SIFIER BREAKPOINTS 

LOGIC SNITCH, RESERVED FOR FUTURE US� 

LOGIC SWITCH, CONTROLS THE CLASSIFIER DEFINITION 

LOGIC SWITCH! MERGE FILE INDICAPCA 

LOGIC SWITCH! CONTROLS THE COMPUTATION CF TAeLE 

1 AND 1ABLElA 

LOGIC SNITCH, CONTHOLS THE CO~PUTATION'CF TaRLE Z 

LOGIC SNITCH, CONTROLS THE COPPUTATION ICF TA6LE 3 

LCGIC SWITCH.r, CONTROLS THE COMPUTATION OF TABLE 4 

LOGIC SWITCH, CONTROLS TABLE 6 (U= PLAN y, it PLANXI 

LOGIC ShITCHt CONTROLS THE COHPUTATIGN CF TABLE b 

LOGIC SWITCH, CONTROLS THE COPPUTATION CF TABLE 

7 AND TABLE 7A 

LOGIC SWITCH, CONTROLS THE CALCULATION CF 

PLAN X 

LOGIC SNITCH, CONTROLS TH� CALCULATION GF 

BURDEN TABLES 

LOGIC SWITCH, STORES TAX NOEL RESULTS 

SUBSCRIPTS FGR THE ARRAY LOGIC; CUTPUT TARLES 

LOGIC SWITCHES 

SUBSCRIPTS FOR THE AHRAY LOGIC; STUBS FOR TABLES 

1,2t Ah0 7 

EQUIVALENT ARRAY FOR OUTPUT TABLE LOGIC ShITCH�S 
TREASURY PEHSObAL INOIVIDUAL INCOME TAX HGQEL. 27 JUN 7@ 10-10 ' 

MAP0 

HAPM 

MARS 

MAXTAX 

MAXTBL 

MCHCK( I 

MCOOE 

METHOC 

MG( ) 

HG( ) 

MIA 

MID 

MIE 

HINTAX 

HLCH 

*** GLOSSARY OF VARIABLE FtAMES *** 

PROGRAM: \EH6*WDEt,-PGOGRAC 

OUTPlrT TABLE LOGIC SkITCHEQ 

AN ARRAY CGNT41NNING THE TITLE LINES FGR SPECIAL 

TAM csue, TABOUT) 

LOhG TERM GAIN OR LOSS(+ OR -1 

LONG TERM GAIN3 FROM INSTALLMEhT SALES (SUB-SEC. 0). 

VARIGUSES CiSES 

RETURN NUMBER 

MAFiITAL STATUS CODE 

FORM OF DEDUCTION COO� 

SAMPLE WEIGHT CLASS COO� 

PRESENT LAW AGI CLASS 

FORM 4972 COO�,/

STGRAGE ARRAY FOR THE PRINTOUT OF ThE RUN 

NUMBER (CCVERP) 

THE SUBSCRIPTS FOR THE AOOITIChCIL VARIABLES 

REQUIRED FROM THE REAL PORTION CF THE WUTLIERS" 

FILE, 

THE SUBSCRIPTS FOR ThE AOOITIGhAL VARIA8LES 

REQUIRED FROM THE INTEGER PORTPCh OF THE 

'OUTLIERS" FILE. 

MARITAL STATUS CODE, 

TAX SAVINGS FROM THE MAXXIUM TAX 'ON EARNED INCOME. 

AL30r THE TAX BEFORE CREDITS UhDER ThE WAXIPUt" TAX 

PROVISION, 

MAXIMUM hU)rRER OF ENTRIES IN A TAX RATE 8CktEDUl.E 

TOTAL NUMBER OF PHYSICAL RETURNS ON THE FILE @Y 

SAMPLE WEIGHT CLASS 

SAMPLE WEIGHT CLASS CCDE 

METHOD OF CHANGING RATE SCHEDULES 

INTEGEH ARRAY FOR THE TAX RETURN INPUT RECCRO 

ARRAY FOR THE STORAGE OF A DATA eLOCK 

(SUB. S4MPLE) 

THE MAXIMUM NUMBER OF HAGI'S (SUB, QURSET) 

TH� MAXIMUM NUMBER OF HOED'S (SUB. BURSET) 

THE MAXIMUM NUMBER OF DEPEhOENT EXEPPTICNS 

EXCLUOING TAXPAYER EXEHPTIGNS CSLR. BURSET) 

MINIMUM TAX AFTER ADJUSTMEhTS (SLB. TXCALC) 

MAXIMUP NUMBER OF LIIUES IN THE CCLClPN HEAOINGS 

(SUB, TAeOlrT) 
TREASURY PERSONAL INDIVIDUAL INCOME TAX MODEL. 27 JlrN 78 10-11 

*** GLOSSARY OF VARIAeLE NAMES *** 

PROGRAF: VER6*MCDEL-PROGRAC 

VARIABLE 

NAPE 

MM( I THt LAST IlrTEGER PORTION CF THE CATA RECCGC. 

MORE ADOITICNAL CORE REQUIRED AT OYhAIVIC ALLCCATIGN 

FOR THE TAeLES 

MT* MIkIMUP TAX AFTER ADJUSTMEhTS 

MTDPy MIIvIMUP TAX DEFERRED FROM PRIOR YEARS 

MZ( I ARRAY FOR THE STORAGE OF A DATA eLOCK 

N VARIOUS USES 

lvUMBER OF PHYSICAL RETURNS BY CELL (Sub. TAR11 

CURR�NT BREAKPOINT IN SCHEDULE I 

ClrRRENT BREAKPOINT IN SCHEDULE 2 

CURRENT BREAKPOINT Ilu SCHEOULE 1: 

RUh NUPBER 

TITLE TO REPLACE THE TITLE ON TF'E TITLEY CAR0 

DETAILED DESCRIPTION CF TAX MOOEL RUN, LIKE 1, 

DETAILED OE3CRIPTION CF TAX MCCEL RUNi LINE 2, 

DATE OF RUN 

VERSION NUMBER OF TABLE GEFtERATCR 

QUALIFICATICk DESCRIPTION 

QUALIFICATION DESCRIPTIOh 

PRCJECTED LEVEL aF THE TAX MOOEL RUN 

3 1 IF THERE EX1313 NC TAX DECREASES 

= 2 IF THERE EXISTS Na TAX INCGEASES 

NAME (1: 11 VEAR OF TAX LAk 

NAME (22 1 AGGREGATE REVENUE ESTIMATE 

N8 1 NUMBER OF BREAKPOINTS IN SCHEDLILE 1 

NBZ NUMBER OF BREAKPOINTS IN SCHEDCLE 2 

NBLK NUMBER OF RECOROS IN THE BLOCK 

N0LKT NUMRER OF BLOCKS PER REEL 

NBRACS NUMBER OF BRACKETS IN THE RATE SCHEDULE 

N8R( NUCBER OF BREAKPOINTS IN A TAX SCPEDULEr ANY PLAN 

NBHh BRANCH INDICATOR FOR LOGIC IN TNE ELDERLY CREDIT 

CALCULATION. 

Ne*( 1 NUMBER CF BREAKPOINTS 

NBOTH fNUICATOR THAT BOTH SPOUSES HAVE RETIRECENT INCCME: 

0 0 GhLY ONE SPCUSE HA3 RETIREPENT IhCtME 

= 1 BCTH SPOUSES HAVE RETIREMEhT IIuCCC� 

NC THE NUMBER OF COLUMNS IN A SPECIAL TAB (SUB. TABOUT) 
TREASURY PERSONAL I~DIVIDLJAL INCORE TAX WGDEL. 27 JUN 7e 10-12 

*** GLOSSARY OF VARIABLE NAMES *** 

PROGRAM: VER6*MGD�L=PRCGRAM 

VARIABLE 

NAPE 

NCHK NUMBER OF PHYSICAL RETURNS INPUTTED BY SAMPLE 

WEIGHT CODE 

NCHGS NUMBER OF CHANGES IN THE RATE SCkEOULE 

NCL CURRENT NUMBER OF GWUPS OF COLUPN hEADINGS 

CHARACTERS EkCOUNTERED (SUtl. HEAC) 

NCLT NUW8E.R OF CHARACTERS CN TH� CCRREhT LINE 

(SUB. T~BOUTI 

NCNT CUARkNT NUPBER OF BLOCKS THAT hAPE BEEN INPUTTED 

NCODE VARIABLE USED FOR COOING ThE SPGRED RESLJLTS. 

NCS NUMBER OF CHARACTERS IN THE STRIhG (SUB. CENTER) 

hE TCTAL NUMBER OF EXEFPTIONS 

NEHR �RROH INDICATOR, NkRRtlr AN ERRCFi WAS DETECTED 

IN SUBROUTINE. HEAD. 

NEWX IFlOICATOR FOR NEW PLAN X 

hEWY INOICATOR FCR NEW PLAN Y 

NEW2 INDICATOR FOR NEW PLAN 2 

NEA NUMBER OF DEPENDENT EXEMPTIONS. 

N�XT INoIcAiaR TO GO TO THE NEXT caLw (sue. PEAO) 

NFL FLAG TO INDICATE HOLOIlvG PERIOG CF LONG TERM GAINS 

NGL NET GAIN CR LOSS (+ CR -1. 

NL hET LGSSES WHNE LIhE 14 I3 A LGSS 

hLCH POINTER TO THE CURRENT LINE OF TkE COLUPN 

HEADINGS BEING CONSTRUCTED (SUB. FEADI 

NLEV YEAR OF THE MAPIN 

NLT THE NUMBER OF LINES IN THE TITLE QF A SPECIAL 

TA8 (3118. TABOUT) 

NLR THE NUPBER OF LINES REMAINNING Oh A PAGE 

FOR A SPECIAL TAB (8U6, TABOUT) 

NLTGL NET LONG TERM GAIN OR LOSS(+ OR -1 

NHAPO THE NUMBER OF ADDITIONAL VARIABLE3 REQUIREC 

FROM Th� REAL PORTION GF TkE "GbTLIERSn FILE. 

NMbPM THE NUM6ER OF ADDITIONAL VARIABLES REQUIREC 

FROM THE IkTEGER PORTION OF THE "CUTLIERS" FILE 

NNtlC NUHBER OF NON-BLANK CHARACTERS (SUB. CEkTER) 

NO TFE Huh NUMBER (COVERPI 

h0dEh EXCESS DEDUCTIONSI EXEMPTIGNS 8 LCSSES CTHER THAN 

CAPITAL LQssEa. 

NOCHCK INDICATOR TO BYPASS DATA CHECK (o=Na CHECK, 

1:CHECK) 

FiaL NUMBER OF LINES 
THEASUGY PERSCNAL INDIVIDUAL XNCCME TAX MODEL, 27 JbN 78 10-1,z 

VARIA~LE 

NAPE 

hOL75 

NPC 

NPL 

NPLAh 

NP 1 

hR 

NRET 

NRMl 

NRPT 

NSAVE 

NS1 

NSZ 

kSTGL 

NSTOP 

NSW 

NTC 

NTOCGO 

NT* 

NWRO 

NWROR 

*** GLOSSARY OF VARIABLE ~AMES*** 

PRGGRAM8 VER6*MOOEL-PRGGRAP 

1975 NET OFERATING LCSS CARRYCVEFi. 

NUMBER OF COLUMNS THAT hILL BE PFiIhTEO tSlle, TA@OLJTl 

A VARIABLE INITIALIZEC TC THE LAST ThO DIGITS 

OF ThE YEAR OF THE TAX LAk REFLECTEC BY 

SUBROUTINE INPUT2 

A VARIAELE WHICH sPEcrFIEs WHIC~ TAX PLAN IS 

CURRENTLY BEING EXECUTEDa 1% PLAh XI Zt PLAN Y, 

AND 3s PLAh 2, 

POINTER TC THE COLUMN POSITION CF CPDG kHERE 

THE CHARACTERS WILL BE IFISERTEC (SUR, HEAOI 

NUHBeR OF ROWS IN THE SP�CIAL TAeULATION 

(SUB, TABCUT) 

NUMBER OF RETURNS IN THE SAMPLE 

NUMBER OF RONS MINUS 1 (SUB, TA8.COT) 

REPETION FACTOR FOR ThE PREVICUS FGRMAT WITh SPECIAL 

TA83 (SUB. TABOUT1 

POINTER TO THE LAST POSITION Ik TWE 

2 ARRAY hHERE COLUMN HkAOIFIG CkAFiACTERS 

WERE STORED (SUB, HEAO) 

NUMBER OF PHYSICAL RETUREtS, TAXAeLE SUBTOTAL 

NUMBER OF PHYSICAL RkTURN8r TOTAL 

NET SHORT TERM GAIN OR LC3S (+ OR -1, 

NUMBER OF F~ETURNSTa eE PRCCESSEC BEFORE 

TERMINATING THE RUN 

INOXCATOR CF THE MACFIITUOE OF THE CURRENT SPGU3E'S 

RETIREMENT INCOME VS THE OTHER SPCUSES RETIREWENT 

INCOME, 

3 -1 CURRENT 3POU3�'8 R,I, < CTHER SPOUSE'S 

RETIREMENT INCOME, 

a 0 BOTH HAVE SAME AMOUIvT CF RaIm 

3 tl CURRENT SPCUSE'S R.1. > CTHER SPCUSE'S 

RETIREMENT INC13WE. 

COLUMN CURRENTLY flEINC PRCCESSED (SU6, HEAD)

NCN-TAXABLE DIVIDENDS & FULL CAPITAL GAIN8 

DISTRIBUTICNS. 

NUMBER CF GENERATE0 DEDUCTION CATEGCRIES 

NUMBER OF hOROS PER BLOCK 

NUMBER OF hOROS PER RECORO 
.TREASURY PERSONAL INDIVIDUAL INCOME TAX MODEL, a7 JUN 76 10-14 

*** GLOSSARY Of VARIAeLE NAMES *** 

PROGRAM8 VER6*MCOEL-PGGGRAM 

VARIAHLE 

NAPE 

14 x NUMBER OF COLUMNS THAT kILL 8E PGINTEO 

NX < OR = 100 (SUB, hEAD) 

NY�AR YEAR OF THE DATA BASE 

1300 DEVICE FGR HANDLING CHARACTER STRINGS 

THAT NO CENTER EVEkLY (SUB, CEkTER) 

01E OThER INTEREST EXPENSE, 

OLorAe( 

ONE 

1 ARRAY FOR RETAINING THE GLD TAX RATE SCPEDULES 

THE OATA ITEM 1.0 

OPTICN GPTIUN NUMBER FOR METHOD OF CHANGING TAX RATES 

OPTN DESCRIPTION OF THE OPTLONS FOR EACH LOGIC SWITCH . UTHERT GTP'ER TAXES# EXCEPT HINIPUH TAX 

OTHP GThER TAXES REDUCING PREFERENCE INCCME 

P69LTC POST-1969 LONG TERM CAPITAL LOSS CARHYOVERS (+), 

P69LTL 1/2 QF POST-1969 LONG TERM L03S CARRYOVERS 

PLQS 1/2 REMAINNING LONG TERM LGS8E3, 

P69STC POST-1969 SKIRT TERM CAPITAL LC33 CARRYCVERS(+), 

P'IOLTC PRE-1970 LGNC TERM CAPITAL LOSS CARRYOVERS(+). 

P7USTC PRE-1970 ShORT TERM CAPITAL LOSS CARRYGVERS(+I, 

PAGI PHGNY AGI FOR SICK PAY LIMITATICIv 

PClSZ SELECTED VARIABLES EXPRESSED Zh FERCENTAGE TERMS 

PEHChUT INPUTTED PERCENTAGE CHANGE 

PIN*(l) SICK PAY EXCLUSION 

PIN*(21 HAXIMUM PEGCENTAGE RATE ON EAR~EDINCOME 

PIN*(N3) PERCENTAGE DEDUCTIONS INCLUSIOB 

PIN*(U) PERCLNTAGE EXfMPTfONS INCLCISICIU 

PIN*(SI FLOOR ON PREFERENCE INCOME REDUCING 

EARNED TAXABLE INCOME 

PIN*(61 MAXIMUM AMCUNT OF FULLY SHELTEREC ALTERhATIVE 

CAPITAL GAINS 

PIN* (71 RATE ON UNSHELTERED ALTERNATIVE CAPITAL GAINS 

PIN*(81 MIhIMUM TAX HATE ON PREFERENCES 

~ 1 ~ 9 FLOOR 1 ON PREFERENCES FOR MINIMUP TAX

PIN*(10) PERCENTAGE MEDICAL INSURANCE PREPIHUM DEDUCTICh 

PIN*( 11I PERCkNT EXCESS ITEMIZED DEDUCTIChS CVER AGI 

PIN* ( 121 PERCENT CF REGULAR TAX TO CFFSET MIhIMUM TAX 

PfN*(t31 PERCENT FOG OPTIONAL TAXABLE INCClrE CRtDIT 

PIN*(14) CEILING ON OPTIONAL TAXAeLE INCCCE CREDIT 

PINe(151 PERCENTAGE FOR CHILD CARE CREDIT 

PIN* (1 61 AMOUNT PER OEPtNOENT FOR CHILD CARE CREDIT 
TREASURY PERSONAL IfvOIVIDUAL INCOPE TAX MODEL. 27 JUN 7@ 10115 

PIN*(17) 

PIN* t231 

PIN*(ZS) 

PIN* ($30I 

P IN* (33 11 

P IPI* ( 321 

PLANY 

PLAN2 

PNt3 

POP( 1 

PP 

PPNS2 

PSEFI 

PREF* 

*** GLOSSARY OF VARII9LE hAMES *** 

PROGRAM; VER6*MODEL-PROGRAM 

MAXIMUM AMOUNT FOR ALL DEPENOENTS UNOER THE 

CHILD CARE CREDIT 

PERCENT FOR EARNED INCOME CREDIT 

MAXIMUM AMOUNT OF EARNED INCOME CREDIT 

EARNED INCCME CREDIT, LEVEL GF AGI kHERE PHASEOUT 

BEGINS, 

LIMITATION ON INVESTMENT IhTERESl EXPENSE 

ELDERLY CREDIT: MAXIMUM AMOUNT S.T. CREDIT, 

SINGLE RETURNS. 

ELDERLY CREDIT: MAXIMUM AMOUNT 8.1. CREDIT, 

JOINT RETURNS. 

ELDER CREDIT: REDUCTION BASED CN AGf, X 

LEVEL OF AGI WHERE PhASE-GUT BEGINS ON THE ELD�RLY 

CREDIT COMPUTATION FOR SINGLE RETURNS, 

LEVEL OF AGI HhERE PHASE-OUT BEGINS ON THE ELOERLY 

CREDIT CGMPUTATION FOR MARRIED FILING SCINT RETURNS, 

ELDERLY CREDIT, RATE OF CREDIT. 

ELDERLY CREDIT: REDUCTION BASE0 Ch EARNED IhCffME, 

AGE C 62. 

ELDERLY CREDIT: REDUCTICN BASED Ch EARNED INcCME, 

AGE b2C= AGE < 72. 

ELDERLY CREDIT8 REDUCTION BASEG CN EARNED INCCME, 

E1 > PIN(.321. 

ELDERLY CREDIT: REDUCTION BASED Ch EARNED INCCME, 

LOWLIMIT. 

ELDERLY CREDITZ REDUCTION BASED CF; EARNED INCffMEt 

UPPER LIPIT. 

N.C.E. 

N.C.E. 

PERCENT NON-BUSINESS. 

AGGREGATE FtUMBER OF RETURNS FOR TBE 54 CATEGORIES 

UF TABLE 1 AND 2 AFTER EXTENSLCN 

PCPULATION CF A SINGLE CELL 

(ADJUSTED) PRIVATE PENSIONS 

PREFERENCE INCOME EXCLUDING THE 'EXCLUDED LCNGTERM CAPITAL GAINS 

TOTAL TAXABLE PREFERENCE INCOME 
TREASURY PERSONAL INDIVIDUAL INCONE TAX MOOEL, .27 JUN 78 10-16 

*** GLOSSARY OF VARIABLE NAMES *** 

PROGRAM: VER6*HGGEL-PROGRAM 

VARIABLE 

NAPE 

PREFMT PREFERENCES FOR THE M4XINUP TAX: ThE LARGER GF 

CURRENT YEAR PREFERENCES CA 1/5 CF PREFEREhCES 

OVER THE LAST FIVE YEARS. 

PRNTCT PRINT ARRAY FOR TA8LE 6 

PSI PERSONAL SERVICE INCOME (1977 - CN) 

PTH POINTER To THE CURRENT OIRECTORY haw IFCTFE 

INPUT BLOCK 

PTPEh PARTIALLY TAXABLE PENSIONS 

Pkl( 1 AGGREGRATE NUMBER OF RETURhS FICA THE 54 CATEGORIES 

IN TABLE 1, EMPLOYED TO MAKE ~DJliST~�NTSIh TABLE 7 

P*( I PLAN PARAMETERS 

OUEST THE LITERAL 7 (SUB. BEAD) 

RbS( 1 MARGlrJAL TAX RATES FOR TABLE 6 

RATE INPUTTED MARGINAL TAX RATE 

RATIO PERCENTAGE OF PERSONAL SERVICE IhCUME TO AGIO 

RCDCNT NUMBER OF RECORDS ON THE CURRENT INPUT eLOCK 

RECORG STORAGE LOCATION THAT WILL RECIEVE THE UNPACKED 

DATA 

RESID ALL INCOME OTHER THAN DIVIDENOS &NO 

CAPITAL GAINS IN AGI. 

HESLCG UNSHELTERED LOIvG-TERM CAPITAL GAINS SUBJECT TC 

A hIGYER TAX RATE, 

RETNO CONS�CUTfVE RETURN NUPBER 

RETNY TOTAL NUMBER OF R�TURhS THAT CFCSE PLAN Y 

HETNZ TOTAL hUMB�R OF R�TURNS THAT ChCSE PLAN Z 

RINC RETIREHEhT INC4NE. 

UfNCL RETIREMENT INCOME OF SPOUSE WITH THE LARGER AMOUNT, 

RINCS RETIREHEhT INCOME OF SPOUSE WITk THE SMALLER AMOUNT. 

RM RIGHT hAN0 MARGIN (9UB. CENTkR) 

RMAX FLAG FOR APPLYING ThE MAX MARGINAL TAX RATE ON 

EARNED INCOME 

THE LITERALS 0 - 9 FOR THE RUN kLPl3ER PRINToUT 

(cawpi 

us LEFT HAND STUBS FOR SPECIAL TA8S (SbB. TARCUT) 

HTE MARGINAL TAX RATE 

RTM MAGGINAL TAX RAT� 

RTMX CALCULATE0 MARGINAL TAX RATE 

R* N.C.Ee 

S A SUM VARIABLE 
TBEASURY PERSCkAL INOIVIDUAL INCOME TAX MOOEL, 27 JUN 78 10-17 

VARIABLE 

NAPE 

s3c 1 

34( 1 

SAGE 

SEA( I 

SBd( 1 

SCHD 

SCHTTLC 1 

SEA( 1 

SEE( 1 

SEEARN 

SEF 

SENF 

SG( I 

SHAREL 

SHARES 

SHELTR 

SICKPY 

SIZERR 

SORTAB( 1 

SLASh 

SS�C 

SSECt 

STAN 

STATE 

STGL 

*** GLOSSARY OF VARIAELE NAMES *** 

PROGRAM: VER6*MGOEL=PHOGRAP 

SUUTOTALS FOR EACH PAGE GF TABLE I? EXCEPT TPE 

SUMMARY PAGE3 

SUBTOTALS FOR EACH PCSGE OF TABLE 4 EXCEPT THE 

SUMMARY PAGES 

SPOUSE'S AGE 

BEGINNING LOCATIUN FCR INPCITTIhG CUTPUT TAeLE 

LOGIC ShITCHES 

BEGINNING LOCATION FOR INPUTTIkG STUBS FOR TA6LES 

Ir Zr AND 7 

SChEOULE NUMBER 

SCHEDULE TITLES FOR TAeLE 6 

ENDING LOCATION FOR INPUTTING CUTPUT TABLE LOGIC 

s~ITCHES 

ENDING LOCATION FOR INPUTTING StLB3 FOR TABLES 

1rZt AN0 7 

SELF-EMPLOYMENT EARNIkGS. 

FILING UNIT 3ELF-EMPLffYED' FARM IhCOPE 

FILING UNIT SELF-EMPLOYED NON-FARM(BUSINES3) 

INCOME 

REAL ARRAY FOR THE TAX RETURN IhFCT RECCRO 

PERCENTAGE SHARE OF INCOME OF JPCUSE WITH TbE 

LARGER AMOUNT. 

PERC�NTAGE ShARE OF JNCOME OF SPCLSE WITH THE 

SMALLER AMOUNT. 

SWELTERED LONG-TERM CAPITAL GAM wemi TG 

PREFERENTIAL TREATMENT AT A LOkER TAX RATE 

SICK PAY 

LOGICAL VARIABLE FOR SIGNALLING THAT MAXIII~MNuM8ER 

OF BRACKETS WAS EXCEEOEO 

ARRAY FOR SORTING THE CHAhGES PC THE 

TAX RATE SCHEDULES 

THE LITERAL SLASH (SUB. HEAD) 

SOCIAL SECURITY BENEFIT3 U3ED Ik CALCUCATIhG THE 

ELDERLY CREDIT. 

(ADJUSTED) SGCIAL SECURITY AND RAILROAD 

RETIREMENT INCOME 

VALUE CF STANOARO OEDUCTICN 

SI� STATE (DVSTATI MAPPED INTC TAX MODEL CCDES. 

SHORT TERM GAINS OR LOSSES (+ 1C;R =). 
TREASURY PEHSONAL INDIVIDUAL INCOME TAX MGDEL. 27 JUN 78 1.0-18 

VARIABLE 

NAPE 

SUBWT( 1 

SUM 

SUM( 1 

SUM1( )

SUMZ( 1 

SUMCGZ 

SUMCGY 

T 

11-7 

TIA 

TIS1-2( )

TZSl-?( I 

T6A( I 

T6S( 1 

T~H( 1 

T7A 

T7S( 1 

TA86Sk 

TAG� 

TAX 

TAX 

TAXl 

TAX2 

TAX3 

TAXA* 

TAXR 

TAxB3 

TAX0 

TAXETI 

TAXEX 

SUBSAMPLE kEIGHT ADJUSTMENT FACTCRS 

TCTAL ALLOkAbLE DEDUCTICNS ON STANDARD CATAGORIES 

TCTALS FOR ThE SUMMARY PAGE3 OF TA8Lii 3 AN0 4 

CGLUMN SUMS, TAXABLE 9lJ8TOTAL 

CCLUMk SUMS, TOTAL 

AGGREGHATE FULLY SHELTERED CAPITAL GAINS ClhDER 

PLAN 2 

AGGREGRATE FULLY SHELTERED CAPITAL GAIN3 UNOER 

PLAN Y 

STCRAGE ARRAY FOR ALL THE CUTPbT TA8LES 

ARHAYS FCR TA8LES 1 THROUGH 7 

ARRAY FOR TABLE 1A 

TABLE 1 STUB3 

TABLE i3 STUBS 

MERGED RATE SCHEDULES FROM T6R( 1 

NUMBER OF T6R( 1 TABLE ENTRIES 

MARGINAL TAX RATES FOR EACH SChECULE( I 

ARRAY FOR TAtlLE 7A 

TABLE 7 8TljBS 

FIRST TIME SWITCH TO INITIALIZE TABLE 6 

TAXPAYER'S AGE 

TAXi FROM THE TAX FUNCTION 

INPUTTED APOUNT OF TAX (SUB. MffATES) 

TAX Oh TAXABLE INCOME hET GF LChG TEHM CAPITAL 

GAINS EXCEPT FOR THE SITUATION kt=ERE ThE TAXPAYER 

ALSO HAS ELECTED THE NAXIMIJM TAX, IN THI3 CASE8 

TAXl MAY 6E LESS THAN THE TAX ICN TINLTG DUE TO THE 

TAX SAVINGS ALREADY REALLZED FRCP THE MAXIHUM TAX. 

THE TAX ON LONG TERM GAINS OF LESS THAN S50r000, 

THE ADOITIONAL TAX ON LONG TERP CAPITAL GAINS 

IN EXCE9S OF SfOiOOOo 

INCOME TAX AFTER CREDITS BUT BEFCRE SAVING3 

INCOM� TAX 6EFORE CREDITS 

INCOME TAX BEFORE CREDITS AN0 SALINGS 

OIVIDENDS RECXEVEO IN AGI 

TAX ON EAR~EDTAXABLE INCCPE 

TAX ON EAAhED TAXABLE INCCPE WITF RATE3 TRUbCATED 

AT PINCZ) 
THEASURY PEHSONAL IE(OIVI0UAL INCOME TAX WOCEL, 27 JUN 78 10-19 

*** GLOSSARY CF VARIABLE NAMES *** 

PROGRAM: VER6*MOOEL-PRCGRAY 

VARIPBL� 

NAVE -m---m-mm-mmm-m*- DESCRIPTION ---mmm--m-mmm---mTAX3 TkE TAX ON TAXABLE INCCME hET CF LOhG TERM CAPITAL 

GAIN3 BUT INCLUOING SUB-SECTICN C GAINS, 

TAXT A TEkPORARY TAX FOR CCMPUTING THE ADDITIONAL TAX 

AN0 EQUAL TO THE LARGER OF TbE TAX ON CROINARY INCOME 

GR ThE TAX Oh TAXABLE INCOME &ET CF LONG TERM CAPITAL 

GAINS BUT INCLUDING TPE SUB-SECTICN D CAPITAL GAINS. 

TCGA TOTAL CAPITAL GAINS ELIGIBLE FCR ALTERNATIVE 

TREATMENT 

TCGSA TCfAL SHGRT-TERM CAPITAL GAIN3 

TINC* TAXAtlLE INCOME 

TINLTG TAXAtlLE INCOME NET OF LONG TERM GAIhS 

TISUBO TAXABLE INCOME NET OF LONG TERM CAPUITAL GAINS 

BUT INCLbOING SUB-SECTICN 0 GAINS, 

TITLE( 1 TITLE, ANY PLAN 

TM*( 1 MARGINAL TAX RATE3 AT EACH BREAKPCINT 

TPEN TOTAL TAXABLE PENSIONS, 

TSLSIA TAX FROM SPECIAL LUMP-SUM INCGPE AVERAGING, 

TSPL STCRAGE ARRAY FOR SELECTED RESULTS FROM TPE SUM 

SUMMARY PAGES OF TABLES 1A AN0 5, 

TSTB( ) EQUIVALENT ARRAY FOR TA8LE STUBS 

TS*( 1 TAX 3CHEOULES 

TTAXA TENATIVE TAX AFTER CR�DITS 

TTL( 1 TITLE, ANY PLAN 

TXPYE NlrMBER OF TAXPAYER EXEMPTICNS 

TX( 1 TITLE FOR PLAN X 

TXCRC TOTAL TAX CREOITS NET GF EXEMPTLCN TAX CREDITS 

TXR EFFECTIVE TAX RATE CALCULATED Ch YC 

TXSAV TOTAL TAX SAVINGS WHEN eow THE PAXIMUM TAX aN EARNED 

INCOME AND ThE ALTERkATIVE TREATPENT OF CAPITAL CAIh9 

ARE ELECTED, IfTHE SIVINCS FROF INCOME AVERAGING IS 

LARGER, TPEN THIS VARIABLE CONTAIhS THE SAVIkGS FROM 

INCOME AVERAGING, 

TY( 1 TITLE FOR PLAN Y 

TY*( 1 TAXABLE INCOME BREAKPCIhTS 

UNCRS UNUSED CREDITS. 

UNMCZ (AOJUSTED) Uh�MPLOYMENT COHPENSATIOk 

UPCC UNUSED~POLITICAL CAMPAIGN CONTGIELTIONS CREDIT 

URIC UklrSED RETIREMENT INCCME CREDIT 
TREASLRY PERSONAL INDIVIDUAL INCGME TAX PODEL. 27 JUN 78 10-20 

*** GLOSJARY OF VARIABLE NAMES *** 

PROGRAMI VER6*MODEL=PROGRAM 

LABEL CONTAINNING THE VERSICk CF THE TAX WCDEL 

AND PRINTED ON THE COVER PAGE ANC THE TITLE PAGE 

VET8 VETERANS BENEFITS (SU!JIMEO GVER TAX IJNIT) 

*AGE$ FILING UNIT 'nAGES 

WELFZ (SIMULATED PUBLIC ASSISTANCE, 

WORK TEMPORARY vrORK AREA FCR AOJUSTXhG OTHER T4XES 

REDUCING PREFERENCE IhCCME, 

WOSOTX SGCIAL SECURITY AN0 RAILROAD RETIREYENTrOI$ABILITY AN0 SUAVIVOR EMPLGYEE TAX, WIFE CNLY 

(ADJUSTED 1 IrORKMENS COMPEh3ATIffhl3UMMED OVER 

TAX UNIT) 

k3SHTX SGCIAL 3ECbRITY AND RAILROAO RETIREPENT HEALTH 

IN8URAkCE EPPLOYEE TAX, FCR WIFE CNLY 

wT7O( I 1970 WEIGHTS BY SAMPLE CLAS3 

iiT NEIGHT FOR THE CURRENT R�CCRD 

wTflERG MERGkO WEIGHT FLOATING POINT. 

%ACE CURRENT SPCUSE'S AGE, 

XL( 1 LABELS FGR PRINTOUT OF THE EXEMPTION ALLOicrANCES 

AND CREDITS PARAMETRS 

TITLES FOR FILING UNIT SIZE TABULATIONS* 

STRING OF TITLE CHARACTERS (SUB, HEAO) 

CahEN INCCME CONCEPT 

ADJUSTED GROSS INCOME CONCEPT. 

TAXABLE INCOME CONCEPT 

VARIAeLE DIMENSION ARRAY FOR SPECIAL TA@S

(sue. TABOUT) 

XCNT INDICATOR ThAT ALL DUPLICATE ENTRIES IN THE TAX 

SCHEDULE3 hAVE BEEN FLAGGEO 

XLIH LIMIT ON INVESTMENT INTEREST EXPEhSE, 

XSHARE CURRENT SPCUSE'S SHARE OF TOTAL kAGES 8 SALARIES. 

XTRA EXTRA aR ADDITIONAL LIMIT GN INVESTMENT INTEREST 

EXPENSE (1975 ONLY), 

2 WORKING STGRAGE (3UR, TABCUT1 

ZP T POINTER TO THE LAST CHARACTER PRCCESSED 

IN THE 2 ARRAY (SUB, HE1601 
TREASLRY PEHSONAL INDIVIDUAL INCCME TAX MODEL, 27 JliN 78 
TREASURY PERSONAL INDIVIDUAL INCOME TAX MOOEL, 27 JUN 78 11-1 

11.1, USER NOTE NUMBER 1: VERSION 3 OF THE TAX PODEL, 

A NUMBER Of CHANGES HAVE BEEN HADE IN ThE CREATICN Gf VERSION 3 OF 

THE TAX MOOEL PROGRAM. THIS NOTE BRIEFLY OCCbPfbTS EACH CHANGE 

MADE TC VERSION i! CF THE TAX MODEL PROGRAM Ih CREATIhG VERSION 3. 

IN THE OUCUMENTATION BELOhr EACH CHANGE IS SUBCLASSIFIED A9 AN 

INPUT CHANGE, AN OUTPUT CHANGE8 A CaMPUTAfPCNAL CHANGE CR A 

TECHNICAL CHANGE, HEIvCEp THE USER CAN READ TkOSE SUeSECTfCNS 

WHICH CORRESPOhO TO HI9 DEGREE GF 1”kGLVEMEhT kIT# THE TAX MCDELw 

TWO ChAluGES, HO~EVER, ARE OF SPECIAL INTEREST. FIRST8 ThE TAX 

MODEL SOURCE HA3 BEEN ANNOTATED. SECUNDt TBE WAP DIRECTIVE HAS 

BEEN t4CDfFIED. (SEE TEChNICAL CHANGE NC. 4). 

A NEW PARAMETER HAS 6EEN ADDED TO THE RUN PARAPETER CAffO (CARD NO. 

100). THIS hEk PARAMETER ALLOWS THE USER TO @YPASS TWSE SECTIONS 

OF THE TAX MOOEL PRUGRAM WHICH CHECK THE CAR0 INPUT DATA, THIS 

OPTION IS FULLY DOCUMNETED IN SECTION 6,1.1, 

11.1.2. OUTPUT CHANGES. 

(1) TwE TAX RATE SCHEDULES USED TU READ: 

SCHEDULE I. (A) SINGLE TAXPAYERS NHO DO kCT QUALIFY FOR 

RATES IN SCHEOULES I1 AND 111, AND (8) MARRIED PERSCNS 

FILING SEPERATE RETURNS, 

SCHEDULE 11. (A) MARRIED TAXPAYERS FILING JOINT RETURNS, 

AN0 (8) CERTAIN hICOW8 AND NIDaWERSw 

TFESE Now READ ~8 FOLLOWS: 

SCHECULE I,(AI SINGLE TAXPAYERS WHC DC MT QUALIFY FOR 

RATES IN SCHEDULES I1 AN0 111, 

SCHEDULE 11. (A) MARRIED TAXPAYERS FILING JOINT RETLlRNSi 

(8) CERTAIN WIDOWS AND WIDOWERS, AN0 (C) PARRIED PERSGNS 

FILING SEPARATE RETURNS (APPLIED AT 11’2 TCE INTERVALS), 

(21 TPE HEADING OVER T~ELAST TWO COLUMNS CF TABLE s USED To 

READ=­

ITEMIZED RETURNS 
T'REASkRY PERSONAL IIvDlVIDUAL INCOME TAX MODEL. 27'JUN 78 11-i 

SWITCHING TO 

STANDARD DEDUCTION 

TPIS hAS BEEN CHANGED TO REAC AS fCLLOk§--

RETURNS NHICH 

CHANGED THEIR 

TYPE CF UEDUCTION 

11.1.,3. COMPUTATIONAL CHANGES, 

(1) TCTAL INCOME IrU TABLE 3 WAS NET OF PENSLCNS AND ANNUITIESi 

Ah0 ALL OTHER SOURCES Of INCOME. THIS HAS BEEN CHAlrGED 

TC INCLUDE PfNSION AND ANNUITIES, AND ALL OTHER INOCME, 

(2) SCURROUTINE MAPIh/70 WAS MODIFIED SO THAT 0CSl)r D(SB), 

D(bl), 0(65I, AND D(68) HEFLECT TOTAL MEDICAL OEDUCTIUNS, TAX 

EXPENSE, CONTRIRUTIONS, INTEREST EXPENSE, AkO MISCELLANEOUS 

DEDUCTICNS RESPECTIVELYo A PREVIOUS PRCGRAPMING ERROR 

RESULTED Ilu OTHER MEOICAL, TAX EXPENSE, OCNTRIBUTLCNS, 

INTEREST EXPENSE, AND MISCELLANEOUS DEDUCTIONS, RESPECTIVELY, 

OCCUPYING THESE FIELDS. 

(3) TWE CALCULATION OF THE 'OTHER' DkDlJCTLQhS SUBCATEGORIES 

WAS MOVED FROM SURROUTIINE BLGkUP/70 TIQ CAAPIN/'IO. 

(4) TPE CALCULATION OF DIVIDENDS AFTER EXCLUSIaN WAS WDIFIED 

TC INSURE A POSITIVE DIVIDEND EXCLUSIO~ OUWERE APPLICABLE) 

CN THE EXTRAPOLATED SAMPLE. THIS WAS ACCOHPCISHEO USING 

TF� FOLLOHING FORMULA­

+--

IDIVIDENDS BEffORE EXCLUSION 

I +--

I IOIVIDEhC EXCLUSICh 1970 

I I +--

DIVIDENDS AFTER = MIN < I IDIVIOENOS BEFORE 

EXCLUSION I MAX C I�XCLUSION 

I I MIN < 

I I I s100.00 

I I +--

I +-­ *rr 

(51 TPE AMOUNT OF RETIREMENT INCOME CREOIT ESTIPATED RY.THE 

TAX MODEL FOR 1974 WAS TWICE THE EXOGEhOLSLY DETERMINED 

TARGET AMOUNT ALTHGUGH THE NClM6ER CF RETbRNS WITH 

RETIREMENT INCCME CREOIT WAS 'GOOD'. CChSEQUENTLY, 50% 
TREASURY PERSONAL INOIVIDUAL INCOME TAX PGDEL, 27 JUN 78 1173 

Cf THE RETURNS WITh RETIREMENP INCOME CREOIP--SELECTEQ 

ON A RANDOM BASIS-WERE ASSIGkED A ZERC LALlrE FCH 

RETIREMENT INCGME CREDIT. 

(b) ALL DOLLAR AMOUNTS ON THE TAX MCDEL SACFLE AliE FiObbCED 

TG ThE NEAARtST CEhT. THE RCCiNDiNG FlrhCTIOk HAS BEEN 

MAOE A PERMANENT PART OF THE TAX MCDEL AhD ALL FINAL TAX 

LIAEILITIES ARt ROUNDED TO ThE NEAREST CENT, 

(71 Ik SUBRCUTINE MAINZ, THE CALL TO TkE TAX CALCULATCR FOR 

PLAN 2 ERRCNEOUSLY CONTAINED THE VARIABLE TIhCX IN THE 

ARGUMENT LIST, THIS HAS 8EEh CHANGED FRCP TINCX TC TINCZ. 

(8) IF AN INOILIOUAL ELECTS TH� SAVIIvGS FRGM INCOME AVERAGING 

HE MAY NOT AVAIL HIMSELF Of THE ALTERNATIVE TAX Oh CAPITAL 

GAINS OR THE MAXIMUM T4X ON EARNEO INCCPE. THIS PRCVISION 

OF THE TAX LAW WAS PREVIOUSLY OVERLOOKED IN THE 

PROGRAMMING OF SUBROUTINE TXCALC AND HA3 kOk BEEN 

CORRECTED. 

(9) UNDER THE 1972 TAX LAW, IT WAS PQSSIBLE FGH AN INOIVICUAL'S 

TAX SAVINGS FROM THE ALTERNATIVE TREAT'PEfvT QF CAPITAL 

GAINS AND THE MAXIMUM TAX ON EARNED INCCPE TO EXCEED THE 

TAX SAVINGS THAT WULD HAVE BEEN GENERATE0 WAD ALL ThE 

MARGINAL RAT�S EEEN TRUNCATED AT THE SOX LEVEL, TkE 

TAX SAVINGS, HOWEVER, WOULD BE IDENTICICAL IN BOTH 

SITUATIONS, ThIS hAS DUE TO THE FACT THAT hET EARhED 

TAXABLE INCOME COULD EXCEED THE VALU� iCf TAXABLE IhCaME 

OEFINED FOR THE PURPUSES OF TNE ALTERNATIVE TREATPENT OF 

CAPITAL GAINS. SIhCE THIS SITUATICN IS LNDESIRARLE, NET 

EARNED TAXAeLE INCOME WAS CONQTRAINED TC BE NO LARGER 

THAN TAXABLE INCOP� DEFINED FOR THE PURPCSES OF THE 

ALTERNATIVE TREATVENT OF CAPfTAL GAINS, 

TO ILLUSTRATE THIS SITUATION, CONSIDER ThE FOLLOWIhG 

EXAMPLE; SCIPPOSE THAT A JOINT RETURN HA3 A TAXABLE INCOME 

OF S4S,OOOo AT ORDINARY RATES, THE TAX 6k THE RETURN'S 

TAxABLE. INCOME MOULD BE 924r970, FURTkfRPORE, A38lrPE 

THAT THE RETURF( HA0 S20r000 OF LONG TERP CAPITAL GAIN, 

THE TAXARLE INCOME FOR THE ALTERNATIVE TAX WULO BE 

~55,000 AND THE TAX SAVINGS wouLo RE sz,eao, THIS 

SAVINGS IS INDICATED BY THE LINES SLOPING OGkN AND TO THE 

LEFT AS kELL AS THE X'S IN FIGURE 1, IF THE RETURNS NEY 

EARNED TAXABLE INCOME IS 90% OF ITS TAXAeLE INCOME, THEN 

hET EARNED TAXABLE INCOME WILL B� S58~1500 AND TPE SAVINGS 

OUE TO THE MAXIMUM TAX WILL BE 3195, THIS 3AVINGS IS 

IADICATED t3Y ThE ASTERISK'S AND THE FIGLRE 1. THE X'S IN 

X's IN FIGURE 1 IS khERE A D01iBLE COlrNTIhG CF THE TAX 

SAVINGS OCCURS, IT IS EQUAL TO ,3X OF 93,500 OR $105. 

CCNSEQUENTLY, THE TOTAL TAX SAVINGS (62820 + 8195 t $30151 
TREASURY PERSONAL IhDIVIOUAL INCOME TAX MODEL. 27 JUN 78 11-4 

I3 3105 TOC LARGE, 

HENCE, hH�h THE MARGINAL RATES ARE TRUIvCPTED AT SOX, ThE TAX 

SAVINGS hILL BE $105 LUkER THAN S3015, THIS IS EASILY 

VERIFIED, WHEN THE MARGINAL RATES ARE TRLlhCATEO AT 50x1 

TPE TAX Oh SbS,OOO OF TAXABLE INCOME I8 S241560e THIS 

IS $410 SAVINGS GEIvERATEO tlY TRUNCATING THE MARGINAL RATES 

AT SOX, CALCULATIhC THE SAVfhG3 FROM Thk ALTERhATIVE 

TREATHENT CF CAPITAL GAINS YIELDS $2500, ThUSt ThE TOTAL 

TAX SAVINGS I3 52910 WHICH IS EXACTLY $105 LESS THAh TVE 

PREVIOUS FIGURE OF 53015. 
TREASURY PERSONAL INOIVIDUAL INCOME TAX MCDEL. 27 JldN 78 11-5 

J I 

0 I 

I I 

N I I 

T .55+ I +--+mm----

I V I//!

H .s2+ +--o--mmo-+//i 

E I I I***XXX//////! 

T .so+ --oo-w-o+***XXX//////I 

U I I 1 1/////////i 

R I I 1 I/////////! 

N I I 1 1/////////1 

3 I 1 I 1/////////1

I t I t/////////l

M I I I 1/////////1 

A I 1 1 1/////////1

H I 1 1 1/////////1 

6 I I 1 1/////////1 .25+ 1 1 l--mmo-mm-1 

N I 1 I I ! 14 

A I I !!! 1 1 

L I 1 I 1 1 1 1 

I 1 1 1 1 1 1 

R I 1 I 1 1 I 1 

A I I I l l 1 1 

T I 1 1 1 1 1 1 

E I 1 1 1 1 1 1 

S I 1 1 1 1 1 1 +o~w~~o-m-~m~+o~~~~~~~wm+~~+~m~+~a+omm

0 44 52 55 58 62 65 

TAXABLE INCGME; 

(IN THOUSAN03 OF $1 

FIGURE it HYPOTHETICAL CASE 

(101 THE LIMITATIaN [3N INTEREST FROM LhVESTPENT INDEBTF(E3S 

FA9 BEEN INCCRPURATED AS A PERMANENT CCCPONENT GF 

SUBROUTINE TXCALC. UNDER THE OLD VERSLCIv CF THE TAX 

PODEL PREjGRAMt THE LIMITATION ON INTEREST FROM 

INVESTWrEhT INOEBTNESS WAS APPLIED DURING ThE GENEGPTftiN 

RUN kHICH CREATED THE PROJECTED 1972 HALF-SAMPLE. HENCE# 

ThE 1972 EXTRAPOLATED DATA REFLECTED THE APPLICATICN OF 

THIS PROVISIOrU OF THE TAX LAW ALTHOUGB ThE CODING FOR THE 

LIMITATION ON INTEREST FROP INUESTMENT IIUDEBTNESS CCES 

NOT APPEAR IN THE TAX MODEL PROGRAM 9COI;CE. 

(11) IN THE PASTi IT ha3 SOMETIMES DESIRABLE TO HAVE THE 

EXCESS OF MEDICAL INSURANCE PREMIUMS ICVER THE SlSO 

LIMITATIOh AS A SEPERATE ENTITY. ALTHOLGH THIS 

QUANTITY CANNOT BE DETERMINED EXACTLY, THE fOLLOkING 

I 
TREASURY PERSONAL INDIVIDUAL INCOME TAX MODEL. 27 JUN 78 11-6 

APPROXIMATIQN WAS EMPLOYED TO RECONSTRUCT AN ESTIMATE 

CF THIS EXCESS, 

VIP t FULL AMOUNT OF HEDICAL INSURANCE FREMIMUFS 

FMIP~1/2 UF MIP (ThIS IS A DATA ITEM Ab0 LIPITEO TO. 

P MAXIMUP OF $150) 

EMIPI EXCESS HEDICAL INSURANCE PREMIMbMS 

b'03 s MEOICAL Ah0 DENTAL IN EXCESS OF '3% OF AGI 

(THIS IS P DATA ITEM) 

lrDl = MEDICINE AND ORUGS IF1 EXCESS OF 1% OF AGI 

(THIS IS A DATA ITEt.1) 

Pill*: MEOICINE AND ORUGS 

lrD3*n MEDICAL Ah0 DENTAL 

PIPIZ,O*(HMIP) 

I0.0 

I +--

I 

MIP - HIN < 

I O*SO*(E1IP) 

EMIP :: MAX < 

I I 150.0 

I +-- +-W 

M03* :M03 + 0,03*(AGI) MOl EMIP IF 103 > 0 

Mol* = Mol + O.Ol*(AGI) IF vD1 > 0 

__ 

11.1.4. TECHNICAL CHANGES. 

(1) SUBRROUTINES IhPUTlr INPUT2r AN0 INPUT3 tAVE BEEN 

REPROGRAMMED. THEY NOW OCCUPY LESS STiGRAGE AN0 

EXECUTE IN LESS TIME, IN AOOItIGNt 3UBRCLTINES 

LNPUT1, INPUT2r AND INPUT3 CONTAIN INSTRLCTIONS 

hHICH WILL BYPAS3 THE INPUT DATA CHECK. 

(2) A NEW SUBROUTINE HAS BEEN AOOEO TO PHASE I, SUBRCUTINE 

ERROR HANDLES THE PROCESSING CF DATA ChECK INTERRUPTS 

Ah0 OUTPUTS OIAGONISTIC M�SSAGES PC THE PRIkT FILE, 

(31 SUBROUTINE BL(IwUPl70 HA3 8EEN VODIFIED PC IhPUT ALL 

EXOGENOUS DATA EMPLOYED IN EXTRAPOLATING THE TAX 

MCDEL SAMPLE FROM DISK STORAGE. IN THE PREVIOUS 

VERSION OF BLOkUPl70r PART CF THE DATA kAS REA0 FRCP 

DISK STORAGE AN0 THE REMAINDER WAS INSERTED kITH 

'CATA' STATEMENTS, 

(41 THE B OPTION HAS BEEN ADDED TC THE @MAP DIRECTIVE 
TREASURY PERSONAL INDIVIDUAL INCOME TAX MODEL. 27 JUN 78 

flu XQf70, ThIS MEANS THAT CORE hfLL NCT BE ZERC 

FILLED BEFORE INSERTING THE TAX MODEL PWCGRAM. Tkf3, 

VCMEWERI SAVE3 PROCESSING TIHE, 

(51 AS A RESULT OF (4) ABOVE, AOOITONAL INSTRCCTIONS hAVE 

8EEN AODED TO SUBRCUTIhES HAINZ, TAB3r TA84r TA86r 

AN0 TA87 TO INSURE ThAT ALL OUTPUT ARRAYS Ah0 WORKIkG 

STORAGE ARRAYS ARE ZERO FILL�O. 

11-7 
TREASURY PERSONAL INDIVIDUAL INCOME TAX MOOEL, 27 JUN 78 11-e 

IIeZe USER NOTE NUPUER 21 REVISION A CF VERSICN 3, 

VERSICN 3 OF THE TAX MODEL PROGRAM HAS BEEN hCCIFIED TC-m 

(A) REDUCE THE CPU RUNNING TIMEt 

(8) REDUCE ThE HALL CLGCK RUNNING TIME8 ANC 

(C) ELIMINATE SCHEDULING PROBLEMS THAT ARISE kHEN TIE 

OPTIONAL OUTPUT TABLES ARE REQUESTED, 

EACh VCDIFICATION WAS A TECHNICAL CH4NGE Ab40 IS BRIEFLY DGCUMENTED 

BELOW , 

(1) SUBROUTINE INDEX HAS BEEN REPLACED WITh Ah ASSEMBLY 

LANGUAGE COUNTERPART, THIS MOOIFICATICN RESULTED IN 

A 10% REOUCTION IN CPU TIME GR A SAVINGS CF 27 

SECONDS PER TAX CALCULATION, 

(21 SlrBROUTfNE MCORE FUNCTIONS TO DYNAMICALLY ALLOCATE 

ADDITIONAL COR� STORAGE FOR THE OPTIONAL CUTPUT 

TABLES, WHEN THE REQUEST FOR MORE STORPGE IS MADE, 

THE REQUEST WILL NaT BE ACCEPTED BY TPE SUPERVISOR 

UhLESS _THERE EXISTS AVAILAeLE STORAGE IN THE OBANK 

CCNTIGUOUS hITh THE USER’S DBANK, IF TF� REQUESTEC 

APOUNT OF STGRAGE IS LARGE AND THE COVPlrTEH SYSTEM IS 

hEAVILY LOIOED, THE REQUESTED STORAGE kfLL NOT e� 

AVAILABLE AN0 THE TAX MOOEL PROGRAM WILL RE SWAPPEO 

OUT UNTIL THE REQUESTED AMOUNT 8ECOMES AVAILAULE, 

WHICH MAY BE SEVERAL HOURS LATER. A PRE’UIOCIS 

PROGRAMMING ERROR IN MCOHE CAUSED REQUESTS TO BE 

MADE FOR APPROXIMATELY 40K OF ADDITIONAL STORAGE 

REGAROLESS OF THE AMOUNT NEEOEC BY THE OFTICNAL 

CUTPUT TABLES, THIS RESULTED IN ThE TAX PODEL 

PROGRAM BEING SNAPPED OUT AND RECHEOULED AT A LATER 

TIME WHEN 40K OF CONTIGUOUS STORAG� HAS AVAILABLE 

Ih ?HE DBANK, SUBROUTINE MCORE HAS BEEh REPLACED 

kITh A CGRRECTED VERSION. ThE NEW VERSLCb bA3 THE 

AODED FEATURE OF ZEROING ANY ADOITIONAL STORAGE TFAT 

IT REQUESTS AN0 OBTAINS, 

(31 ONE OF THE FACTORS hhICH DETERMINES THE kALL CLOCK 

TIME FOR A TAX MODEL RUN IS SCHEDULING, A PROGRAM 

CANNOT 8E SCEHDULED FOR EXECUTION UNLESS THERE EXISTS 

AVAILABLE CORE LARGE ENOUGH TO ACCOMMODATE THE PROGRAM, 
TREASURY PERSONAL INDIVIDUAL INCOME TAX Mc0EL8 27, JUN 78 11-9 

IT kA3 DISGOLERED THAT THE PkASE 111 OVERLAY OF THE 

TAX MODEL PRGGRAM REQUIRED APPROXIMATELY 40K OF STGRAGE 

IN ORDER TO EXECUTE8 8Y MODIFYING VIRTUALLY EVERY 

SUBRUUTINE IN PHASE IIIr SUBRCUTIhE MAIN2 IR PFASE 11, 

AhD THE @MAP DIRECTIVES IN xQT7tr ThE STCRAGE NECESSARY 

TC EXECUTE PllASE 111 HAS REDUCED TC 24K. CGhSkQUE~TLY, 

TI-� TAX HODEL PROGRAM CAN BE SCHEDULED HCRE FREOUEhTLY 

hITH A CORRESPCJNDIhG REOUCTIaN IN THk kALL CLOCK TIP�, 

(41 IN ORDER TO REDUCE THE CPU TIME FURTHER# THE FOLLakING 

CFANGES hERE MADE; 

(A) INPUT2 WAS PERMANENTLY MODIFIED Ta REFLECT 1972 

LAW, 

(8) DATA STATEMENTS WERE ADOED TO SUl3RCUTINE IhPUTZ 

TO INITIALIZE THE PLAN Y TAX PARAMETERS TO THEIR 

1972 VALUES, 

(C) TWE OLD SUBROUTINE INPUT2, AS MCDIFIED BY (A) AND 

(B), kAS STORED IN AN ELEPENT NAMED IkPUTZ/’lZt 

(D) THE STATEMENTS IN SUBROUTINE INPUT3 kWICH EQUATE 

THE PLAN X AND THE PLAN Y PARAM�TEAS kERE OELETED 

SINCE THIS IS Noh ACCOMPLISHED BY (B),

(E) XQT70 lvAS MGOIFIED TO INCLUDE GNLY IhPUTZIft 41 

COLLECTION# AND 

(F) THE OLD X(JT70, AS MODIFLED BY (E), kA3 PUT IN AN 

ELEMENT NAMED XQT77. 

AS A RESULT OT THESE CHANGE3, IT IS ha bCNGER NECESSARY 

TC INCLUDE THE @ADD LAW72 CONTROL STATEPENT IN THE 

TAX MODEL RUN CONTROL STREAM SINCE INPbTt/72 HAS 

ALREADY BEEN MODIFIED TO REFLECT 1972 LAk. IN ADDITICN, 

1htPUTt DOES hOT HAVE TO BE RECOMPILED EACP TIME A TAX 

WCDEL RUN IS MADE, THE CONTROL STATEMENT @ADD XQT70, 

WHICH HAS PREVIOUSLY LOCATED FOLLOkING ThE @ADD LAk72 

STATEMENT, I3 NOk PUNCHED AS #A00 XQT7Zo 

hEW VERSION 

@RUN TA~~WOZ,TARWIVER~,S~~OO 

1 0 0 

sIMILARLV, AN INPUT2/71 AND AN INPUt2/70 HAVE BEEN 

CREATED TO REFLECT 1971 LAW Ab0 1970 LAk RESPECTIVELY. 

TCIERE ALSO EX-ISTS AN XQT71 AND AN XQT7O PC COLLECT 
TREASURY PERSONAL INDIVIDUAL INCOME TAX MCDEL. 27 JUN 78 11-10 

THE APPROPHIATE VERSIOFJ OF IhPUfZ, 
TREASURY PERSONAL LFrDIVIDUAL INCGME TAX MODEL. 27 3UN 78 11-1 1 

11.3. USER NOTE NUMB�R 3: REVI310N B CF VERSICN 3. 

VERSICh 3 GF THE TAX MCCEL PROGRAM HAS BEEN MCCIFIED ONCE AGAIN. 

THE ~QOIFICATIQ~3ARE A TECHNICAL CHANGE 4NO KEOlrCE THE CPU 

RUNNIhG TIME. 

11.3*1. TECHNICAL CHANGE. 

(1) ThE PROJECTED 1974 TAX MODEL DATA 8ASE HAS BEEN RECREATED 

USING A NEk PACKING PROGRAM, YHIS NEW PACKING SUBRCUfIhE 

IS MCRE EFFICIENT AND PACKS THE OATA IN LESS SPACE 

ThAh BEFORE. IN AOOITIONt EACH BLGCK CCNSISTS GF 1792 

WCR03. THIS MAKES THE DATA FILE TRANSPARENT IN THAT ONE 

HAY COPY THE FILE FROM DISK Ts6 TAPE AND \ICE VERSA CITHOUT ANY COMPLICATICNS. 

(2) OBVIQU3LYt A hEh PACKING ROUTINE NECESSITATES A N&k 

UNPACKING RCUTINE. THE TAX MODEL PROGRAM NOW CQNTAINS 

AN ASSEMBLY LANGUAGE SUEROUTINE UkPKER. SUBROUTINE 

SAMPLE WAS MODIFIEO TO EXPAND THE INPUT ARRAYS TC 1792 

@CRUS AN0 TO READ A 1792 kORD HEADER LABEL. THESE P@OIFICATIONS HAVE REALIZED A SAVINGS OF 40 3ECO)UDS CF CPU 

TIME ON A GIVE TAX CALCULATION SIHULATIOhr TkE NEW UNPKER 

SUBROCITIN� AND THE )UEW INDEX SUeROUTINE frCG&THER 

REALIZE A SAVINGS OF 67 SECONDS OF CPU TIP� Ch A ONE TAX 

CALCULATION 3IMULATION. 

(3) THE OLD VERSIGNS OF SUBROUTINE UNPKER bkO S&RPLE ARE 

STILL R�SIDENT IN THE TAX HOOEL PROGRAM FILE UNDER 

THE ELEMENT NAME3 OF .UNPKERO AND .SAMPLEC. 
TWEAS~RY PEHSONAL INOIVIDUAL INCGME TAX MGDEL. 27 JUN 78 11-12 

11*4* USER NOTE fVUMEER 4: REVISIGN C CF VEESI’Ch 3. 

VERSICk 3 OF THE TAX MOCEL PROGRAM HAS BEEN MCDIFLED TO PERMIT THE 

STOHIIVG OF PRE-SELECTED RESULTS FHCM TAt3I.E LA AN0 TAeLE 5. IN 

OHOER TO EXCERCISE THIS FEATUHE, THE USER MUST (A) SUPPLY THE 

130-133 INPUT CARUS DOCUMENTED ON PAGE 6,21A Ah0 (8) MCOIFV HIS 

RUN STREAM AS 3hOwN IN FIGURE 6.3.2 CN PAGE 6.54. 

BY EMPLOYING TH� TAX MODEL TABLEMAKER PHaGRAIF.’, TFE USER CAN ACCESS 

ThE RESULTS OF PAST TAX MOOEL RUNS OR CURREhT TAX MOCEL RUNS. 

OOCUYEhTATION CN THE USE OF THE TAX MOOEL TABLEMAKEH PRCGRAM MAY 

BE uBTAINE0 FROM HALT STR(jMOUI3T IN THE OFFICE tJF TAX AhPLYSISt 

TREASURY OEPARTMENT, 
TREASURY PERSONAL IIUOIVIDUAL INCOME TAX MODEL. 27 JUN 78 11-13 

11.5. USER &CITE NUMeER 5: REVISIGIV D CF VEGSIGN 3. 

REVISICN 0 TO ThE TAX MCDEL PROGRAM COVERS PRECOMINATELY TPUSE 

CHANGES ASSCjCSPTEO nITH THE EXTHAPGL4TIGN TIC 1975 LEVELS. 

HGWEVER, A NUMRER OF OThER CHANGES NOT ASSCCICITEO WITH TP'E 1975 

EXfRAPCLATIOh kkRE ALSO MAD�. THIS NOTE BRIEFLY DOCliMEhTS EACH 

CHANGE OF REVISION 0. IN THE DOCUPENTATION BELOk, EACH CHANGE IS 

SUBCLASSIFIED AS A CORRECTIONt AN INPUT CHAhGEi AN OUTPLT CHANGE, 

A TECbIUICAL CHAhGEt OR A COMPUTATIONAL CHANGE, bENCEt TPE USER 

CAN QEAO THOSE SUESECTIGBNS WHICH CORRESPOND IC HIS OEGREE OF 

INVOLVEMENT WITH THE TAX MODEL. 

11.5.1. CORRECTIONS. 

(11 SUBROUTINE INPUT3 HAS BEEN CORRECTED 8C TkCIT TH� 

DEDUCTION$ MATRIX IS PRUPERLY INITIALIZED kHEN PLAN 2 

IS 8PECIFIED. 

(2) Slr@RCUTINE MAIN2 HAS 8EEN CORRECTED 30 TkAT THE AMCUNT 

OF CAPITAL GAINS TAXED UNDER THE ALTERNATIVE TREATFEhT 

IS $TOHE0 PROPERLY. 

(3) SUBRCUTINE HAPIN/70 HAS REEN CORRECTED SO THAT 

PREFERENCE INCOME IS PROPERLY CALCULATED. 

11.5.2. INPUT CHANGES. 

(1) LGGIC SWITCH NUMBER E ON TH� 110 CAR0 HA3 BEEN ACTIVATED 

TG CONTROL THE MAP PROCESS, IF LOGIC SkITCH NUMBER 2 

IS SET EQUAL TO 1, SUBROUTINE MAPIhI70 kILL E� CALLED 

BY SUBROUTINE SAMPLE. THIS CHANGE ALLOlrS THE USER TC 

READ A MAPPED AND PACKED SAMPLE IN THE 8ASE YEAR, kITHOUf 

PRCGRAM MODIFICATIOhSt BY SETTING LGGIC 3kITCH NUMBER 

2 EQUAL TO ZERO. 

(21 LGGIC SNITCH hUMUER 7 ON THE 110 CARD HAS BEEN EXPAhDED 

TO ALLOW THE USER THE CAPABILITY OF EMPLCYING SEVERAL 

OPTIOhAL AGI CLASS BREAKPOINTS AUTOMATICALLY. TwI3 IS 

OOCUMENTED IN TABLE 6.1.1 AND TABLE 6.1.9 CF CHAPTER 6. 
TWEASURY PERSONAL INDIVIDUAL INCOME TAX MODEL, 27 JbN 76 11-14 

11.5.3. OUTPUT CHANGES. 

(11 A FORTRAN PREPROCESSOR PROGRAM, NAPED CCVERP, HAS BEEN 

AOOED TO THE: TAX MOOEL PROGRAM. TO USE CCVERPi THE 

USER MU81 REARRANGE HIS IhPUT CGNTROL 9TREAM AS SHONh BELU” 

0ELTpIDN TPFS.THO4TAlrENOL 

1 3 0 1234 

1 3 1EXAMPLE RUN 1234 

1 3 2EXAMPLE CETAIL: LIhE 1 

1 3 3EXAMPLE DETAIL: LIhE 2 

@END ENOL 

*XQT CGVERP 

19751974 

OAOO THOATA 

@ELT,IUL TPFS.CSLISTII�NOL 

@FCR,S MAIN2,MAINZ 

-51856 

PAD0 XQT75 

1 0 0 1970 47650 1975 

1 1 0 0 1 

0ADC TMOATA 

2 1 1PLAN X = 1974 LAW AT 1975 LEVELS 

3 1 1PLAN Y :PLAN X 

3 99 1 

OEhG ENOL 

6400 CSLIST 

OASGlAx STGRE*ESTIMATES. 

e�LT,IDN STCHE*ESfIMATES.RUN1~~41iFIN 

@AOO,D 14, 

*Et10 FIN 

*FREE STORE*ESTIMATES. 

@3YM PRINTS,,RMEXTR 

@BRKPT PRINTS 

THE PHOGRAP COVERP kILL PRODUCE TlkC CGVER PACE9, SIVILAR -

TO THE ON� SHOWN IN FIGURE 21 PRIOR TO TI’� NORMAL TAX 

HCDEL PRINTCIUT. 
**********r******~ 

d 

Q)
TKEASLGY PERSCNAL IhDIVIDUAL INCOME TAX MOCEL. 27 JLhi 78 1l-le 
. 1 

(1) TbE FAIVCY DETERMlNATlGN CF ThE CIVICENb EXCLuSiCrU 

UStD IF( ThE 1974 EXTkAPGLATICh hAS SCRAPPEC FCR Thk 

1975 EXTSAFOLATION, ThE C1VIDEh.C LXCLbSlCh FCR 

1975 EOUALS THE OIVICErUO EXCLUSICh FtiR 1970. 

(21 Tkt CEILING APPLIED TC MCVIhG EXFENUSES (%2500*OVFS) 

1Fc Th� 197u EXTRAPGLPTfCN hAS hCT AFPLIEO Ih THE 

1075 EXTRAFOLATILN, 

(3) A hEk Ih~Uti!SUHPRLGRAM FCE 1975 LAk hAS CFEATEO 

ANC HA$ AN ELEMENT ~AMECF INPLTZ175. 

(4) SUbftCUTFhE TXCALC hAAS McCIFIEC TC INCCRPCRATE 

TkL kAHNEG INCGME CHkCXT CF b.G* 2166. TFIS SECTZLN 

CF CCOk IS EXECUTED kkkh TI.� VPFiIAEILt LArc=iq'lS, 

TPIS ECCLRS ivHtN XQT75 IS 'ADCkCI. 

(5) A hEk SECTIUh C;F SOUKC& CCCE kA3 etEN ACOEC 16 

Sltb~LlUTIhEMAPIN/70* THIS CLCIht REUllCES TbE 

APLUhtT CF hET LONG TERM CAPITAL LCSSkS' ANC IS 

tXtCLiTtD FCR THE 1975 tXTRAPCLATICh ChLYt 1.t. 

whkh LEbtCz1475. 
11.6. bSkR NcjTE hUMRER 6: VEHSIGh 4 CF THE TAX PLGD�L, 

11.0.1. CCRRtCTIUNS. 

11.6.2. INPUT CHANGES. 

(1) LCCIIC ShlTCh NUMREG 1 HAS 8EEh OEACTIVATEC. ThIS 

SwllCH NU LCNGER CCNTROLS THt tYTWAPCLPTICh GF ThE 

LFVtL CF IhCLF(E Ah0 OEDUCTIGIJ ITkrJS. TbE EXTRAFOLATICh 

PGCCtSS 1s A STAhO-ALQNE PHGGPAM, 

(31 LCGIC SNITCH NbMEEG 4 hU LONGER REGUIHt9 THbT A 

128 CAhC @E kEAC CR THAT ThE LABkL CARCS @k ADDED 

~XPLICITLY IN THE INPUT CONTACL STGEAP, THESE 

FLLCTICNS ARE PUTCYATICALLY PEWFCRPEC f5Y ThE 

PGCGCiAM, 

(41 LCGIC SNITC~NLPEECi 9 hAS 6Ekh EXPAhCIEU TC VAKt TPE 

LEFPkLT OEFINITICN CF ADJUSTLO GHCSS IhCCpk THAT CF 

FGtSthT L~HIkSTEAC LF PLAk X. (SEE TAELE 6.2.1 FCH 

FLHTFkk r)ETAlLS), 

(51 LCGIC S.rITCH NCr*eEFi 18 HAS UkEN ACTIJATEC IC CLATRCL ThE 

LALCLLATIC~CF PLA~X. IF LCGIC ShITCk hLfleER 18 IS 

SET tGCIAL'lC Ir PLAN Y hILL BE CALCULATEC. (SEE TAELE 
THEASIIRY PERSUNAL IhOIVIDlrAL INCCPE TAX MLCkb, 27 JLN 78 11-19 

6.2.1 FCG FUHThEFi CETAILS), 

(b) ~Cti1C Sh1TCI.r hLMBFH 19 HAS B�Eb ACTIVATEC TC ALLUh ThE 

LSER Tb PRfiDUCk BUfiOLN TABLES wITF TEE PFiE-S�T CPTIChS 

Ev SETTIlvG THIS SkITCH EolJAL TC 1, 1F LCGIC ShITCt= hbPEtR 

19 TS SET &QUAL IC 2, THE bUFtCEN TARLES HILL Bt PGCCUCEC 

wITh ThE USER SUPPLIED CPTIChS. (SkE TAeLE b.Z.1 AhC 

SECTlCN 8.6 Fah FURTHER DETAILS) 

t7) SLFJRCUTINE IhPbT2 PAS AN ADDITICNAL FEATLGE. 

IF The TITLE RkAD FRGM THE !11 CAR1; IS (?LANK, Tbth THE 

TITLE USEC oh THE 131 CAR0 IS INSEkTEC FCR THE FLAh y 

TITLE CARC, 

(8) TCE 100 CAkD HAS BEEk REPLACkO f3Y A NEn CATA CARO 

CALLtD THE 'SAMPLE' CARD. SkE SECTIU~6.2.1 FOG 

FLRTnER DETAILS. 

ll.b.3. GUTPUT ChAhGES, 

(5) A hE* PGCGRAMt IJPOATtr HAS BEEN ACOEO TC THE TAX 

PCOEL. ThIS PGGGRAH AhD ThE CGNTRCL STPTEMEhTS 

~ELRH VILL AUTCMATICALLY UPDAT~wE TAELEPAKER 

OIFiECTQGY . 
ll.b.4. T�CHrUXCAL CHANGES. 

ru) SCBFGUTINE MAIh2 HAS REEN CHANCED TO IhCGEASk TPE 

1F.k SIZE CF THt ARC~AY 'TJ' IN CRCEFi TC IhCCPPOkATE 

Ah ACDITICNAL COLUMN IN TABLE 4. 

(51 SLeRtiLTIhtE MAIN2 HAS ALSU BEEh VOOIFIEC 1.C CELkTE ALL 

Tb'E GLL) CGCING ASSCCIATEO wITP THE PRIhTCLT GF 

ItvUUILIGliAL TAX RETIIRhS. 

(0) SbBROUTIhE SAPPLE I-AS BEEN PCDIFIEC TC RtAD PACKED Ab0 

PAPPfrD DATA BASES CNLY. CIJNSEOUthTLYt TFE CALL STATEPEhTS 

TC C5b8FtCbTINt PA PI^ HAVE HEEh CELETED. Ih ADDITICh, THE 

LCLLECTI@~CF STATISTICS FUR TABLE 3 AiiE hCk ACCUMLLATED IN 

TFE ARRAY AT3 INSTEAD OF THE LAST STCRAGE LCCATICbUS CF THE 

ARRAY 0. 

171 ALL VEFiSIChS CF SUePCUTINE IhPLT2 PAVE @EEh OELETEI; AhLI 

~EPLACLDkITh BLcCk DATA SUBHCUTihES, Ih LERSICN f cF ThE 

TAX PODEL PHGGkAP, ThE VARICLS TAX PARACETLRS, kPlICh ARE 

STCREG Ih LAdELEC COMMON# HERE IkITIALIZED 1h SLBRCCTINE 

IhPUTZ VIA DATA STATEMtNlS. ALThCLGh TbI9 TEChhIQbE IS 

ALLCWED dY LNIVAC FOkTRAN AND DIG kCRK Ih TkE PAST, IT IS A 

GLtSTItiNABLE CtDIhG TECHNIQUt ESPECIALLY kPEN TbE PRCGRAM IS 

EXECUTtD VIA MlrLTIFLt CVtRLAYS. THIS IS EVIDEhT FGCC Tht 

FACT THAT VEkSIOh 4 GF TH� TAX MCCEL PFiCGGAP DIC kCT kCRK 

w'ITt-LUT TbE tlLLCK CATA CtiNVEkSICh. 

(8) DLt TC (1) AbGbE, ALL X(JT ELEPkklS NEEE PCDIFIkC TL 

kEP'CVE RtFtkthCES TC IbPUTr! Ah0 ADC TFt AFPGCPkIATE 

kEFEkEhCE kGk THE @LCCK DATA SkRNCLTIkE. Ih 4UClTICtvv 

A hrT CCLEkP STATEvcEhT WAS IhStRTEU AT TPE EkGIhhIhG CF THk 

ELtMthT. . 

(9) A kEr* GEhERALIZEC SUbkUUTINE LNPKEH bA$ EEth AOCLD 

TC ThE TAY MLDtL PCiCGRAM. TrIS FiCbTINk IS hC LChGEG 

LIMIiEC TC UhPACKIhG DATA EECCFiDS CF 1U4 klrGUS Cri LESS (Skt 

APPELOIX 5,e FLW FLRT~WDETAILS). 


h 

TREASLRY PERSljhiAL IhDIVIDUAL 1.NCGPE TAX MODtL, 27 JUh 78 11-22 

11.1.1. CORGkCTIGhS. 

(1) TrE CPTICNAL TAXAbLE LNCOME CHEOIT nAS AT ChE 

TIME INCLRWECT FUR HARkIED FILING SEPAGATE. THIS 

NAS CCRGECIED. 

(2) TbF PARTIAL HEPLACECEhT OF TAX HATE SCt’ECLLkS 

1210 hCT ALnAYS NCRK PROPERLY, THIS WAS CCRRECTED 

EY VlRTllt CF GTHkR PRGbRAMMIhG CHAhGkS Ih PkASk I. 

(31 it.� INABILITY CF TPE TAX FllNCTICN TC ACCEFT A 

PARGIhAL PATE CF 1UOZ HAS UEEN CCRKECTEC. 

(4) TcE CHIS SIC^ CF ThE �IC INTHt bllRCEhc TAeLES 

kTlJTIhkS hAS BtEh COCiRECTEO. 

(21 TrE FCRMAT FCH ALL DATA CARUS BEGINhIhG klTh 

irk 211 CAR0 AhC GCIhG THRULGIJ ThE 3 99 1 CARD 

PAVE ChANGtD. (SEE CHAPTER 6 FCR CETAILSI. 
11-24 

11.7*2. CUTPUT CbAhGES. 

(ill CCMPLETELY FEVISkC @PAP DIRECTIVES TC FRCFkRLY CVEGLAY 

-SPACE- 4hC ALL WEFCRT kClR~1hC AFiEAS. 
A. 

TKEASLGY PEWSChAL I~OIVID~JALINCCME TAX KCEL. 27 JLN 78 11-25 

11.7.5. CCMPUTATIChAL CHANGES. 
11.6.1. CCRRECTItiNS. 
# 

11.3.d. TECkhICAL CHAkGES. 

(2) A hEk SUtiRCUTIhE, 'EYDEF', HAS BEEN ADCEC TC TI+� 

MUEL. EYOEF COMPtTtS ExPANOEO IhrCOME bSED FOR 

CLASSIFICATION PURPOSES, 

15) P NEL( SURRCUTIhE 'FUSIZE' HAS BEEN ADDER TC TbE TAX 

PCCEL, TkIS RCUTINt IS A USkR CALLED FiCLTIhE THAT 

PERMITS Tkt PABULATICN OF TAX LIABILITY PhD ThE 

ASSCCIAT~CPERCENTAGt DISTWIBIJTICN BY FILING UNIT SIZE 

(SkE SkCT1tiN r3,8 FOR OtTAILS), 

(1) ~L~GOUTINE'TXCALC~ HAS BEkh GtVlStR TC 6EFLtCT 197.5 

TAX LAN (StE APPtlrrCIX A & E CF CbAPTER 5 FUR OtTAILS). 

(2) A ~EIL~ FUIJCTILN RCUTIhE, 'ELOCF', bAS @EEh AGDEC TC TciE 

PCGEL. THIS FUNCTICh COMPUT~STHE ELCERLV CREDIT 

CIlrrOER 1978 TAX LAk. 
THE P~GPOSECF THt 1AbLEMAKER DIRECTCHV PGCGGAP IS TC PfiCVIGE THE 

U3EH kITb THE CAPABILITY TO EXECllTE 0hE CF TFE TbREE TASKS BELOk: 

(A) tiL�RY TPF. DIHECTCRY TO DETEQMINE IF A TAX MCOEL 

MC~ hAS FIhXShED SLCESSFULLY CR TC ACQLIFE THE

CESCRIPTICh IjF A TAX MODEL RUN, 

(8) PRCOUCE A FULL LISTING OF TbE TABLEVAKEG 

LIRECTOWY AT TkE REMGTL PRINTER, 

(C) SEARCh THE ENuTlGE DIHECTURY FCG TWCSE TAX MCD�L RUhS 

wc~skOESCHIPTXCN PAicwis Tht KEY NCHOS SLPPCIU eY 

TI-� uStR 4hO PHIhT THE RESULTS CF THk SEARCC AT TWE 

REMOTE PRIhTEP, 

ThE ijSEt4 PAY SkITCh HACK AND FGRTh bETNtEiL tACh CF TPE TPHEE 

TASKS, ~CwkvEk, TASK (8) FAY dE PERFOHIJED ChLY GhCE CURXhiG ANY UhE 

EAECLJTI~~Ntif- lbt DIHFCTCRY PROGRAM, 

12,l.Z. USER PHOCECURE. 
12-2 

***EhTER DIHECTCHY ELEMENT hAME 

OIWkCTGHY CURRENT OUPRTER OIRECTCRY 

OIVWTG77 UIkEClCRY 

OIIIGTR77 OICitCTOPY 

DIILTk77 UIREcTCRY 

OIQTR77 DIRECTCRY 

12.1.2.3. TASK UIIESTICN. 

FGR THE IV QlrAKTER CF 1977, 

FUR THE IIIGUARTEF OF 1977. 

FOK THE XI GbARTER CF 1977. 

FOk THE I (3LARTEFi CF 1977. 

TrE IJSER SHCULT! RESPOND hITH ON� CF THE THREE CPTIOhS, GLERy, 

FL'LL, CR SEARCh. 
‘/ 

COhTthlS AhE: 

$35 CRkOlT ti MSO CHANGES 

EXlEhO $25 PER CAPITA CREOIT TC AGEC AhC f?LIhC 

MSD CF 22/30/22: MFS NU OPT TIhC CR 

tSlIMATE = 400 

***GE*INO, GR STOF*** 

THE ~5fRM4Y RESPCNC kITh REWIND CR STCF, 

kCTt: ThE FULL TASK PAY Bt PEGFORbIED ChLY ChCE PEW EXECLTICN UF 

ThE ~APLEPIAKER bIkEC1I;RY PROGRAM. 

*** 1 ElLTtR KLY kCROS FCR SEARCh*** 
fi~h~JIJME~R3093 PAUE GN 011377 

AT 1970 LEkELS 8 1976 LAN: RESTRiCTEC TC 

CCNTtNTS 4kE: 

CHILO CARE 

1976 LAk klTh 1975 ChILD CARL LjECUCTICh 

(Ab1 I& 73 IS APPl4GXIMATE - SEE PE FXR CETAILS) 

LSIIMATE = (100 

RUN NUMRFLH 2094 MAOE QN 011377 

AT 1976 LEVELS 8 1974 LAW: RfiSTRICTEC TC 

CCrvTtNFS ARE: 

CbILO CAKE 

1976 LAN WITh 1976 ChILD CAR� OECUCTICh 

(A61 1% 73 IS APPRGXIMATE - SEE pE FCR DETAILS] 

ESTIYATE = 4UO 

THE PRCGRAM LIST TWC(21 RUNS AT A TIWE IrHEN TFE LSEH REGUESTS THE 

ktSlrLTS OF A SEARCH BE SENT TO TbE TER~INAL, ThIS tkA@LES TPE 

USEH TC OUIT IF ht HAS FOUND THE RLN HE IS SEARCHING FCli OR TU 

CUNTI~LE IF Hk hAS NGT FOUNO THE PrlGPEG RUN, IN ADGITICh, TNU 

LlSTIhGS RILL FIT Oh A CRT SCREEN hIThCLIT 4hY LO9S CF IhFGRMATIOh, 

IF Tht uSkR HIShES TO CCNTINUE, HE WCL'LD th1Efi-m 

Y 

HUN NUPHkR 3152 BADE ON 011377 

AT 1976 LEVELS 8 1976 LAW: RESTRICTtC TC 

CGkTtNTS AH�: 

CkILD CARE 

1976 LAN L(/REPEAL C,CARE VS 76 LAW kITF C.CARE CkEDIT 

(Ab1 IN 73 IS 4PPRLXIMATE - SEt FE FCR CETAILSI 

ESTIMATE = 421 

IF TclE USER REQLESTS TFAT ThE SEAHCh LISTING E� FRIriTEO A1 Tb'E 

HtMUTE PRlhTEt?, ThE LIST kILL NOT RE PRINTEC LhTIL Tbk LSER 

TtRMIhAIES THE PRCGRAP. AT Th� CChCbUSIOh CF THE ExECIIT1Gh.r TIIL 

LISTI~GFCR ALL SEAffCbES PERFLRHEO GUFiIhG TI-� GUN WILL E� 

GUTPLTTECI TL' Tk� REMOTE. PkINTtR. 
12.1.2.7. LXIT