A Stata Interface to TAXSIM for calculating US and State Income Tax Liabilities

taxsim9.ado is a Stata program for calculating US and State income tax liabilities from user supplied data. It does not do the calculation in Stata, or on the user's computer. Rather, it packages up the data and sends it to the taxsim server at the NBER office in Cambridge for processing, then loads the results into a Stata format dataset on the user's computer. The process is fast enough to be interactive for modest sized datasets, and will work for large files also. The program takes into account up to 21 income, deduction and personal characteristics in the calculation of taxes.

First, be very familiar with Internet Taxsim before using the Stata interface.

From within any Version 8 or later Stata obtain the Stata taxsim9.ado file:

. net from "http://www.nber.org/stata" . net describe taxsim9 . net install taxsim9 Be sure to read the instructions: .help taxsim9 will show the help file. After reading that carefully, run a small test: .set obs 1 .gen mstat = 2 .gen year = 2008 .gen pwages = 200000 .taxsim9,replace .list will return 2008 tax information for a single married taxpayer with wage income of $200,000 and no other income, dependents or deductions. You can fetch a larger sample file and test it, also: .net get taxsim9 .use taxsimscf,replace .taxsim9,replace .summarize

One problem I have found at a handfull of sites is a firewall that blocks ftp traffic.

Daniel Feenberg
617-588-0343
feenberg at nber dotte org