Fix SC H.4216: remove spurious sc_additions from AGI-based taxable income#7514
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Fix SC H.4216: remove spurious sc_additions from AGI-based taxable income#7514
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…able income The baseline sc_taxable_income starts from federal taxable_income (which has standard/itemized deductions and QBI already removed). SC sc_additions (QBI addback + SALT addback) exist to undo those federal deductions. The H.4216 reform starts from federal AGI, where those deductions were never taken. Including sc_additions double-counted $1.8B of income, inflating reform taxes and shrinking the apparent tax cut from the expected ~-$119M (RFA fiscal note) to just -$23M. After this fix the budget impact is -$111M, within calibration range of the RFA's -$119.1M estimate. Co-Authored-By: Claude Opus 4.6 <noreply@anthropic.com>
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Co-Authored-By: Claude Opus 4.6 <noreply@anthropic.com>
Co-Authored-By: Claude Opus 4.6 <noreply@anthropic.com>
DTrim99
approved these changes
Feb 27, 2026
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Summary
sc_taxable_incomestarting from federal AGI instead of federal taxable income, but was incorrectly includingsc_additions(QBI addback + SALT addback)taxable_income; since the reform starts from AGI where those deductions were never taken, including them double-counts ~$1.8B of incomeTest plan
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