Show HN: PolicyEngine lets you simulate reforms to the tax and benefit system

uk.policyengine.org

6 points·MaxGhenis··3 comments

> Results are calculated using the OpenFisca-UK tax-benefit microsimulation model, and assume no behavioural or macroeconomic effects. See the repository for more information.

Isn't this the complicated and interesting part? It'd nice to add a 99% tax to rich people and big business, but they may just leave the country and build a factory abroad, and there will be no local jobs.

Our current static approach follows the bulk of public policy analysis, but we do plan to add dynamic responses. For example, https://compute.studio/PSLmodels/Tax-Brain which supports "partial equilibrium" which adjusts earnings based on user-provided labor supply elasticities. https://compute.studio/PSLmodels/OG-USA performs general equilibrium analysis, which also considers feedback loops labor and capital over decades, though it takes several hours to solve. (We've contributed to both of these open-source projects.)

These labor supply elasticities and other parameter values are debated (especially when it comes to deficits and corporate taxes), so we're starting with the less controversial results while also describing changes to labor incentives through the marginal tax rate charts.

PolicyEngine lets anyone simulate reforms to the UK tax and benefit system, and see the impact on society and their own household. We're working on building it for the US as well. Here's a two minute demo video: https://youtu.be/P7ELqxEHRhE

Looking forward to feedback or questions!

Reply on news.ycombinator.com