Model Run Exploratory

Population

Government Agent = 1
Producer Agents = 100
Consumer Agents = 110

Structural unemployment is set at nine percent of the consumer population.

Expenditures Regime 1 (1960 - 2020)

USA Real-world total managed expenditure (sum to annual) data source starting 1960, ending 2020.

U.S. Bureau of Economic Analysis, Government total expenditures [W068RCQ027SBEA], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/W068RCQ027SBEA.

Flat Rate Taxation

Set at 37% of all consumer agent income.

Expenditures Regime 2 (2021 - 2050)

Marginal Rate Taxation

Government agent funding of producer agents will increase at 4% per annum (in every step that follows 2020).

A 'historical average wage' is calculated in each iteration. The 'historical average wage' is used in the current iteration to apply marginal rate taxation.

Marginal Rate Tax Brackets:

Tax Bracket 0: No tax on a wage amount up to the first 50% of the historical average wage.
Tax Bracket 1: Pay 60% tax on any remaining wage amount that is between 50% and 100% of the historical average wage.
Tax Bracket 2: Pay 70% tax on any remaining wage amount that exceeds 100% of the historical average wage.

Taxation Comparison Example

Model Iteration Historical Average Wage: 36253.103 (Previous iteration).

Consumer agent 5 is paid 40235.84.
A flat rate tax of 14887.26 would have been returned. Under marginal rate tax, 13663.85 is returned.
Consumer agent 10 is paid 24380.53.
A flat rate tax of 9020.80 would have been returned. Under marginal rate tax, 3752.39 is returned.
Consumer agent 8 is paid 62032.38.
A flat rate tax of 22951.98 would have been returned. Under the marginal rate tax, 28921.42 is returned.

Consumer Agent 8 Marginal Tax Return Breakdown

50% of historical average wage amount at iteration 6: (36253.103 / 2) = 18126.55

No tax on wage amount up to the first 50% of the historical average wage amount.
Tax on wage amount that is between 50% and 100% of the historical average wage amount (18126.55 * 60%) = 10875.93
Tax on wage amount that exceeds 100% of the historical average wage amount ((62032.38 - 36253.10) * 70%) = 18045.49

Consumption function

Proportion of disposable income: 60%
Proportion of (agent wealth) at the opening of the period (quarter): 40%

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Money Supply Velocity

Negotiations

With Martian negotiations scheduled to begin January 2035, USA money supply velocity trends gently downwards.

Money Supply .

Fiscal Balance

Fiscal Balance .

Consumer Rating

Consumer Rating .

Marginal Taxation

Supply

The total payments returned to the government agent by consumer agents since the beginning of marginal taxation.

Marginal Taxation Supply Curve .

View abmsim accounting.

# Marginal tax to pay.
def marginalTaxToPay(wage, historicAverageWage):
    marginal_tax_to_pay = 0

    # Tax Bracket 0: No tax on any wage upto the first 50% of the historic average wage amount.
    # Tax Bracket 1: Pay 60% tax on any remaining wage amount that is between 50% and 100% of the historic average wage amount.
    # Tax Bracket 2: Pay 70% tax on any remaining wage amount that exceeds 100% of the historic average wage amount.

    bracket_one_amount = 0
    bracket_two_amount = 0

    if wage <= historicAverageWage:
        bracket_one_amount = wage - (historicAverageWage * 0.5)
    else:
        bracket_one_amount = historicAverageWage * 0.5
        bracket_two_amount = wage - historicAverageWage

    if wage > 0:
        marginal_tax_to_pay = (bracket_one_amount * 0.6) + (bracket_two_amount * 0.7)

    return marginal_tax_to_pay