New York EITC#
The New York EITC equals 30 percent of the federal EITC, minus the New York household credit.
Examples#
The New York EITC provided up to $2,000 in 2021, for a joint filer with three children and earnings between about $25,200 and $26,100. It is not smooth because it subtracts the New York household credit, which falls with income in a stepped manner.
from policyengine_us import IndividualSim, Microsimulation
import pandas as pd
import plotly.express as px
LIGHT_GRAY = "#F5F5F5"
GRAY = "#BDBDBD"
BLUE = "#5091cc"
LIGHT_BLUE = "lightblue"
DARK_BLUE = "darkblue"
COLOR_MAP = {"0": GRAY, "1": LIGHT_BLUE, "2": BLUE, "3": DARK_BLUE}
def make_eitc(adults, children):
sim = IndividualSim(year=2021)
sim.add_person(name="head", age=25)
members = ["head"]
if adults == 2:
sim.add_person(name="spouse")
members += ["spouse"]
for i in range(children):
child = "child{}".format(i)
sim.add_person(name=child, age=6)
members += [child]
sim.add_tax_unit(name="tax_unit", members=members)
sim.add_spm_unit(name="spm_unit", members=members)
sim.add_household(name="household", members=members, state_code="NY")
sim.vary("employment_income", max=60_000, step=100)
return pd.DataFrame(
dict(
employment_income=sim.calc("employment_income")[0],
ny_eitc=sim.calc("ny_eitc")[0].round(),
mtr=-sim.deriv("ny_eitc", "employment_income", wrt_target="head"),
adults=adults,
children=str(children),
)
)
# Make a table of EITCs for different numbers of adults and children.
l = []
for adults in range(1, 3):
for children in range(0, 4):
l.append(make_eitc(adults, children))
df = pd.concat(l)
LABELS = dict(
employment_income="Employment income",
mtr="Marginal tax rate of NY EITC",
adults="Adults",
children="Children",
ny_eitc="New York EITC",
)
fig = px.line(
df,
"employment_income",
"ny_eitc",
color="children",
animation_frame="adults",
labels=LABELS,
title="New York Earned Income Tax Credit",
color_discrete_map=COLOR_MAP,
)
fig.update_layout(
xaxis_tickformat="$,",
yaxis_tickformat="$,",
plot_bgcolor="white",
xaxis_gridcolor=LIGHT_GRAY,
yaxis_gridcolor=LIGHT_GRAY,
)
fig.show()