Transfer Income ModelVersion 3
Steps in Simulating a Program
Despite the great variety of tax and transfer programs, the same basic steps are involved in simulating most programs. Those steps are:- Defining the filing unit
- Deciding whether the unit is categorically eligible for the benefit or categorically required to pay the tax
- Determining relevant amounts of assets and applying assets eligibility tests
- Determining relevant amounts of income
- Applying income eligibility tests for a transfer program or income tests to determine filing status for a tax program
- Computing the benefit or tax
- Deciding whether the unit will participate
