set more 1 /* File: cepr_march_tax.do Date: Oct 1, 2015, CEPR March Version 0.9.9 Oct 13, 2015, CEPR March Version 0.9.9.1 Oct 13, 2016, CEPR March Version 1.0 Apr 11, 2019, CEPR March Version 1.1 Desc: Creates consistent tax variables for CEPR consistent extract of March CPS March Note: See copyright notice at end of program. */ /* Determine survey year */ local year=year in 1 /* Notes from Unicon about tax variables Data from the American Housing Survey (AHS) , the Income Survey Development Program (ISDP), and the Internal Revenue Service (IRS) were combined with Current Population Survey (CPS) data to create simulations of taxes paid, number of tax filing units, adjusted gross income, and other tax characteristics. In addition, the State Tax Handbook from Commerce Clearing House is used as an information source for tax data. Universe - all persons however value is from tax filing unit head The value of this variable is withheld by the Census in the fall ASEC release of the most current file. In winter, the Census will issue a revised file with the value included. Unicon will replace the fall release with the winter release as soon it becomes available. For a discussion on tax and benefit variables, refer to Census paper P60-186RD, 'Measuring the Effect of Benefits and Taxes on Income and Poverty: 1992'. Appendix C describes the process the Census used to match data to the CPS files. This applies to most variables in this file (not fedtaxac, sttaxac, child_tc, achild_tc): This variable first appears on the CPS file in 1991. However, noncash benefits data for the earlier years were made available on-line from the Census. Unicon merged the extra data onto the original data using the following match variables: 1980-1987 hhid, fampos and !perid 1988B-1990 hhid, famposo and !perido Unfortunately, it is not possible to create the famposo and perido variables for 1988 (per Census Bureau, 12/95). Therefore, the additional data file for this year was only prepared for the 1988 bridge file." */ /* Taxable income ammount */ if 1980<=`year' & `year'<=1987 { * keep unicon variable name } if `year'==1988 { gen byte taxinc=. } if 1989<=`year' & `year'<=2012 { * keep unicon variable name } if `year'==2013 { replace taxinc=. } if 2014<=`year' & `year'<=2018 { gen taxinc=tax_inc if tax_inc~=. } lab var taxinc "Est. Taxable income amount" notes taxinc: March CPS: tax_inc notes taxinc: Not available 1988, 2013 notes taxinc: Value is from tax filing unit head notes taxinc: Bottom/Top Code: -9999/99999 (80-10), -9999/9999999 (11-on) /* Tax filer status */ if 1980<=`year' & `year'<=1987 { gen byte filestat=flstat if flstat~=. } if `year'==1988 { gen byte filestat=. } if 1989<=`year' & `year'<=2012 { gen byte filestat=flstat if flstat~=. } if `year'==2013 { gen byte filestat=. } if 2014<=`year' & `year'<=2018 { * keep Census name } #delimit ; capture lab def filestat 1 "Joint, both <65" 2 "Joint, one <65 & one 65+" 3 "Joint, both 65+" 4 "Head of Household" 5 "Single" 6 "Nonfiler" ; #delimit cr lab val filestat filestat lab var filestat "Tax Filer Status" notes filestat: March CPS: filestat notes filestat: Not available 1988, 2013 notes filestat: Asked of all respondents /* Marginal Tax Rate */ if 1980<=`year' & `year'<=1988 { gen byte margtax=. } if 1989<=`year' & `year'<=2012 { gen byte margtax=mrgtax if mrgtax~=. } if `year'==2013 { gen byte margtax=. } if 2014<=`year' & `year'<=2018 { gen byte margtax=marg_tax if marg_tax~=. } lab var margtax "Marginal Tax Rate" notes margtax: March CPS: marg_tax notes margtax: Available 1989-on (except 2013) notes margtax: Value is from tax filing unit head notes margtax: changes in 2002, 2004, 2014 /* Adjusted gross income */ if 1980<=`year' & `year'<=1987 { * keep Unicon variable name } if `year'==1988 { gen byte agi=. } if 1989<=`year' & `year'<=2012 { * keep Unicon variable name } if `year'==2013 { replace agi=. } if 2014<=`year' & `year'<=2018 { * keep Census variable name } lab var agi "Est. Adjusted Gross Income" notes agi: March CPS: agi notes agi: Not available 1988, 2013 notes agi: Value is from tax filing unit head notes agi: Bottom/Top Code: -9999/99999 (80-10), -9999/9999999 (11-on) /* Federal retirement payroll deduction From UNICON: Until 1988 the information that this variable represents was combined with FICA information in the variable fica. The mean value in 2000 is quite low compared to the means of the adjoining years: 1999: 39.71 2000: 7.72 2001: 44.57 The maximum values are: 1999: 48,165 2000: 15,949 2001: 70,980 */ if 1980<=`year' & `year'<=1988 { gen byte fedret=. } if 1989<`year' & `year'<=2012 { *keep Unicon variable name } if `year'==2013 { replace fedret=. } if 2014<=`year' & `year'<=2018 { gen fedret=fed_ret if fed_ret~=. } lab var fedret "Est. Federal Retirement Payroll Deduction" notes fedret: March CPS: fed_ret notes fedret: Available 1989-on (except 2013) notes fedret: Value is from tax filing unit head notes fedret: Bottom/Top Code: 0/75000 (89-10), 0/999999 (11-on) /* Social Security Retirement Payroll Deduction From UNICON: In the years 1980-1987, this variable represents the value of federal retirement for federal workers (class of worker, longest job last year equals federal worker) or FICA for all nonfederal workers. In the mid 1980's, new federal workers began to receive FICA. Starting in 1988, this variable was divided into two variables: fica and fedret. */ if 1980<=`year' & `year'<=1987 { *keep Unicon variable name } if `year'==1988 { gen byte fica=. } if 1989<=`year' & `year'<=2012 { *keep Unicon variable name } if `year'==2013 { replace fica=. } if 2014<=`year' & `year'<=2018 { *keep Census variable name } lab var fica "Est. Soc. Sec. Retirement Payroll Deduction" notes fica: March CPS: fica notes fica: Not available 1988, 2013 notes fica: Value is from tax filing unit head notes fica: Bottom/Top Code: 0/99999 (80-on) /* Federal tax liability before credits */ if 1980<=`year' & `year'<=1987 { *keep Unicon variable name } if `year'==1988 { gen byte fedtaxbc=. } if 1989<=`year' & `year'<=2012 { *keep Unicon variable name } if `year'==2013 { replace fedtaxbc=. } if 2014<=`year' & `year'<=2018 { gen fedtaxbc=fedtax_bc if fedtax_bc~=. } lab var fedtaxbc "Est. Fed tax liability b/f credits" notes fedtaxbc: March CPS: fed_tax, fedtax_bc notes fedtaxbc: Not available 1988, 2013 notes fedtaxbc: Value is from tax filing unit head notes fedtaxbc: Bottom/Top Code: -9999/99999 (80-10), /* */ -9999/999999 (11-14), -9999/9999999 (15-on) /* Federal tax liability after credits */ if 1980<=`year' & `year'<=2004 { gen byte fedtaxac=. } if 2005<=`year' & `year'<=2012 { *keep Unicon variable name } if `year'==2013 { replace fedtaxac=. } if 2014<=`year' & `year'<=2018 { gen fedtaxac=fedtax_ac if fedtax_ac~=. } lab var fedtaxac "Est. Fed tax liability after credits" notes fedtaxac: March CPS: fedtax_ac notes fedtaxac: Available 2005-on (except 2013) notes fedtaxac: Value is from tax filing unit head notes fedtaxac: Bottom/Top Code: 0/99999 (05-06), -6999/99999 (07-10), /* */ -9999/999999 (11-14), -9999-9999999 (15-on) /* State tax liability before credits */ if 1980<=`year' & `year'<=1987 { * keep Unicon variable name } if `year'==1988 { gen byte sttaxbc=. } if 1989<=`year' & `year'<=2012 { * keep Unicon variable name } if `year'==2013 { replace sttaxbc=. } if 2014<=`year' & `year'<=2018 { gen sttaxbc=statetax_bc if statetax_bc~=. } lab var sttaxbc "Est. State tax liability b/f credits" notes sttaxbc: March CPS: statetax, statetax_bc notes sttaxbc: Not Available 1988, 2013 notes sttaxbc: Value is from tax filing unit head notes sttaxbc: Bottom/Top Code: -9999/99999 (80-10), -9999/999999 (11-on) /* State tax liability after credits */ if 1980<=`year' & `year'<=2004{ gen byte sttaxac=. } if 2005<=`year' & `year'<=2012 { *keep Unicon variable name } if `year'==2013 { replace sttaxac=. } if 2014<=`year' & `year'<=2018 { gen sttaxac=statetax_ac if statetax_ac~=. } lab var sttaxac "Est. State tax liability after credits" notes sttaxac: March CPS: statetax_ac notes sttaxac: Available 2005-on (except 2013) notes sttaxac: Value is from tax filing unit head notes sttaxac: Bottom/Top Code: 0/99999 (05-10), -9999/999999 (11-on) /* Child Tax Credit */ gen child_tc=. if 2005<=`year' & `year'<=2012 { replace child_tc=cdcred if cdcred~=. } if `year'==2013 { * missing } if 2014<=`year' & `year'<=2018 { replace child_tc=ctc_crd if ctc_crd~=. } lab var child_tc "Est. Child Tax Credit" notes child_tc: March CPS: ctc_crd notes child_tc: Value is from tax filing unit head notes child_tc: Bottom/Top Code: 0/9999 (05-10), 0/99999 (11-on) notes child_tc: Available 2005-on (except 2013) /* Additional Child tax credit From UNICON: ASEC patch file, released by Census 07/14/04 For more information on changes, see http://www.census.gov/hhes/www/income/altmeasincome.html "This credit is for certain individuals who get less than the full amount of the child tax credit. The additional child tax credit may give you a refund even if you do not owe any tax." Census email, HHES Division Income Survey Branch. */ gen achild_tc=. if 2005<=`year' & `year'<=2012 { replace achild_tc=acdcred if acdcred~=. } if `year'==2013 { * missing } if 2014<=`year' & `year'<=2018 { replace achild_tc=actc_crd if actc_crd~=. } lab var achild_tc "Est. Add'l Child Tax Credit" notes achild_tc: March CPS: actc_crd notes achild_tc: Value is from tax filing unit head notes achild_tc: Bottom/Top Code: 0/9999 notes achild_tc: Available 2005-on (except 2013) /* Earned Income Tax Credit (EITC) From UNICON: "The value is a simulation based on income and tax rules. It is an upper bound for what is possible. It is not the actual reported amount. If a married couple is due a joint credit, the amount is assigned to one, the other is assigned a value of zero. However, if there are multiple people in the family with credit then it is possible to have different values in the same family. (per Census 9/03) 2002 ASEC patch file, released by Census 07/14/04 The original data value is represented in eitcrd. The patch data value is represented in zeitcrd. The mean value of the patch is 2.2, which is not consistent with the mean of this variable in other years. For this reason, we make the value available, but have assigned it the alternate name. Prior to 9/05, Unicon had assigned this var name to the patch value. For more information on changes, see http://www.census.gov/hhes/www/income/altmeasincome.html A user note in the 1995 manual states that the Earned Income Tax Credit has been updated, as a result of the 1994 tax law changes, to include single filers who can claim the earned income tax credit. 2002 Patch file not used. From Unicon: "Email from Census states that the patch accidentally was the State EITC not the Federal EITC as was intended. (9/16/05)" */ gen eitc=. if 1980<=`year' & `year'<=1987 { replace eitc=eitcrd } if 1989<=`year' & `year'<=2012 { replace eitc=eitcrd } if `year'==2013 { * missing } if 2014<=`year' & `year'<=2018 { replace eitc=eit_cred } lab var eitc "Est. EITC amount" notes eitc: March CPS: eit-cred notes eitc: Missing for year 1988, 2013 notes eitc: notes eitc: top values 1999, 4999 for 80-94, 95-on, resp. /* Property taxes */ if 1980<=`year' & `year'<=1987 { *keep Unicon variable name } if `year'==1988 { gen byte prptax=. } if 1989<=`year' & `year'<=2012 { *keep Unicon variable name } if `year'==2013 { replace prptax=. } if 2014<=`year' & `year'<=2018 { gen prptax=prop_tax if prop_tax~=. } lab var prptax "Annual Property Taxes" notes prptax: March CPS: prop_tax notes prptax: Not available 1988, 2013 notes prptax: Universe is all households notes prptax: Bottom/Top Code: 0/99997 /* Copyright 2019 CEPR, John Schmitt, Hye Jin Rho, Janelle Jones, Cherrie Bucknor, Hayley Brown This file is part of the cepr_march_master.do program. This file and all programs referenced in it are free software. You can redistribute the program or modify it under the terms of the GNU General Public License as published by the Free Software Foundation; either version 2 of the License, or (at your option) any later version. This program is distributed in the hope that it will be useful, but WITHOUT ANY WARRANTY; without even the implied warranty of MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the GNU General Public License for more details. You should have received a copy of the GNU General Public License along with this program; if not, write to the Free Software Foundation, Inc., 59 Temple Place, Suite 330, Boston, MA 02111-1307 USA. */