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Add Streamlined EITC and CTC Linear Phase-Out reforms #7110

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@PavelMakarchuk PavelMakarchuk commented Jan 6, 2026 •
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Summary

Adds two structural reforms for modeling tax policy alternatives:

Streamlined EITC

  • Adds filing status dimension to maximum EITC credit
  • Single/HOH filers with children: $3,995 max
  • Joint filers with children: $4,993 max
  • Childless filers: $0 (unchanged)

CTC Linear Phase-Out

  • Changes CTC phase-out from $50 per $1,000 increment to linear phase-out
  • CTC phases out completely between IRS threshold and configurable end threshold
  • Default end thresholds: $240K (single), $440K (joint)

Note: For minimum CTC refundability at zero earnings, use the existing ctc_minimum_refundable_amount reform.

Parameters Added

Parameter Description
gov.contrib.streamlined_eitc.in_effect Enable Streamlined EITC
gov.contrib.streamlined_eitc.max.single Max credit for single/HOH by child count
gov.contrib.streamlined_eitc.max.joint Max credit for joint filers by child count
gov.contrib.ctc.linear_phase_out.in_effect Enable CTC linear phase-out
gov.contrib.ctc.linear_phase_out.end Phase-out end threshold by filing status

Test plan

  • 7 unit tests for Streamlined EITC
  • 9 unit tests for CTC Linear Phase-Out
  • Additional changes pending

Closes #7109

🤖 Generated with Claude Code

PavelMakarchuk and others added 4 commits January 5, 2026 23:08
@PavelMakarchuk @claude
Add Streamlined EITC and CTC Linear Phase-Out reforms
be38d89 
Streamlined EITC:
- Adds filing status dimension to max EITC credit
- Single/HOH with children: $3,995 max
- Joint with children: $4,993 max
- Parameters at gov.contrib.streamlined_eitc.*

CTC Linear Phase-Out:
- Changes phase-out from $50/$1K to linear phase-out
- Configurable end thresholds by filing status
- Parameters at gov.contrib.ctc.linear_phase_out.*

Closes #7109

🤖 Generated with [Claude Code](https://claude.com/claude-code)

Co-Authored-By: Claude Opus 4.5 <[email protected]>
@PavelMakarchuk @claude
Simplify parameter descriptions
ad6a404 
- Use active voice
- Remove specific dollar values
- Remove parameter path references

🤖 Generated with [Claude Code](https://claude.com/claude-code)

Co-Authored-By: Claude Opus 4.5 <[email protected]>
@PavelMakarchuk
minor
0526907
@PavelMakarchuk
descriptions
23db0c1
@PavelMakarchuk PavelMakarchuk marked this pull request as ready for review January 6, 2026 05:00
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Add Streamlined EITC and CTC Linear Phase-Out reforms

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