Description
Calculate benefit cliff discrete income gap from explicit caller-supplied inputs.
A policy scenario makes eligibility bases, rates, thresholds, periods, and costs explicit. A calculated share or balance follows those assumptions. It does not select the governing policy or establish what caused an observed program outcome.
Calculate benefit cliff discrete income gap from explicit caller-supplied inputs.
When to use this tool
Use it for benefit cliff discrete income gap when the required inputs and conventions are already available.
How to use the tool and how it works
- Enter oldIncome, newIncome, oldBenefit, newBenefit, taxIncrease. Use the stated units and boundary conventions.
- Run the calculation. Correct any input error before interpreting a result.
- Read grossGain, disposableGain, effectiveLossRate. Inspect any known, defined, inclusion, or boundary flags before interpreting numeric values.
Require newIncome>oldIncome>=0 and nonnegative oldBenefit, newBenefit, and taxIncrease. Return grossGain, disposableGain=grossGain+newBenefit-oldBenefit-taxIncrease, and effectiveLossRate=(oldBenefit-newBenefit+taxIncrease)/grossGain.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| oldIncome | Old Income | Required. Finite number; minimum 0. |
| newIncome | New Income | Required. Finite number. |
| oldBenefit | Old Benefit | Required. Finite number; minimum 0. |
| newBenefit | New Benefit | Required. Finite number; minimum 0. |
| taxIncrease | Tax Increase | Required. Finite number; minimum 0. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| grossGain | Gross Gain | Required. Finite number. |
| disposableGain | Disposable Gain | Required. Finite number. |
| effectiveLossRate | Effective Loss Rate | Required. Finite number. |
{
"input": {
"oldIncome": 100,
"newIncome": 110,
"oldBenefit": 20,
"newBenefit": 0,
"taxIncrease": 2
},
"output": {
"grossGain": 10,
"disposableGain": -12,
"effectiveLossRate": 2.2
}
}Limitations and assumptions
- EffectiveLossRate may be negative or greater than one. This compares two supplied scenarios and does not calculate actual taxes, entitlement, or a continuous marginal tax rate.
- The field tables describe structural bounds; the mechanics also state cross-field requirements. Malformed input shapes, disallowed keys, and invalid domains cause input errors. Results must remain finite and within the declared output contract. A successful false flag or zero placeholder is distinct from an error.
- Numeric arithmetic uses binary floating point. Exact comparisons have no hidden tolerance or decimal rounding; negative zero is exported as zero. Decimal-text integer operations retain the exactness specifically stated above.
Alternative or Complementary methods
For benefit cliff discrete income gap, check the source records and the supplied rule before comparing the result with another method. Consult the applicable authoritative rule when deciding eligibility, legal timing, fees, or obligations.
References
Similar or alternative tools
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