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

taxsim27.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 26 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 taxsim27.ado file:

. net from "http://www.nber.org/stata" . net describe taxsim27 . net install taxsim27 Be sure to read the instructions: .help taxsim27 will show the help file. After reading that carefully, run a small test: set obs 1 gen year=1970 gen mstat=2 gen ltcg=100000 taxsim27,replace list and confirm that fiitax is 16700.04.

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

Daniel Feenberg
feenberg at nber dotte org