Ask HN: Is there a system formalizing US tax code as set of inequalities
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btw, took me a lot of time to figure this out. http://mathb.in/49229
This is useful for people with multiple unrelated employers with 401k plans.
This is useful for people with multiple unrelated employers with 401k plans.
It should be possible to convert the tax code to some kind of decision tree. I suspect this is essentially what tax prep software does internally.
Let x be a 401k plan (the wording I'm using might not be correct)
The problem with all the tax software I know is that it is for tax reporting, not planning. It is a blackbox function. But if it can be expressed as a set of inequalities, it can help with tax planning as one can do optimization over it.
I did some search and it looks like people do use linear programming for international tax planning. https://www.ttn-taxation.net/pdfs/Speeches_NewYork_2012/N08-MiklosVasarhelyi.pdf
As another example, this tax planning related article about the long term capital gain bump would be very easy to incorporate into an optimization system(in fact, completely automatic) if we do have the system of inequalities in place. https://www.kitces.com/blog/long-term-capital-gains-bump-zone-higher-marginal-tax-rate-phase-in-0-rate/