A tax-benefit microsimulation model for Venezuela, built on the PolicyEngine framework.
pip install -e .[dev]from policyengine_ve import Simulation
sim = Simulation(
situation={
"persons": {
"adult": {
"age": {2025: 30},
"employment_income": {2025: 1000},
"is_public_sector": {2025: True},
}
},
"households": {
"household": {
"members": ["adult"],
}
},
}
)
net_income = sim.calculate("household_net_income", 2025)
print(f"Net income: {net_income[0]} VES")- Personal income tax (8 brackets, 6-34%)
- Payroll taxes (IVSS, BANAVIH, INCES, unemployment)
- VAT/IVA (16% standard, 8% reduced)
- Sistema Patria bonuses (public sector, pensioners)
- Gran Misión Amor Mayor (income-tested social pension)
- Benefit cliff modeling: The Gran Misión Amor Mayor pension has an income test at the minimum wage threshold, creating an MTR > 100% cliff.
- Public/private sector divide: Public sector workers receive comprehensive income packages (~$160/month) while private sector minimum wage is ~$3.50/month.