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Fix hbai_household_net_income to respond to council tax abolition and LVT#1529

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vahid-ahmadi merged 3 commits intomainfrom
fix-hbai-council-tax-lvt
Mar 17, 2026
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Fix hbai_household_net_income to respond to council tax abolition and LVT#1529
vahid-ahmadi merged 3 commits intomainfrom
fix-hbai-council-tax-lvt

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Summary

  • Council tax abolition: Added a formula method to hbai_household_net_income that excludes council_tax from subtracts when abolish_council_tax is enabled, matching the pattern used in household_tax, gov_tax, and household_benefits
  • LVT: Added "LVT" to the subtracts list so land value tax reduces HBAI income (and thus affects poverty statistics)
  • Added YAML unit tests covering both fixes individually and combined

Context

hbai_household_net_income is the income measure used for official poverty statistics (in_poverty_bhc / in_poverty_ahc). It was subtracting the raw council_tax input variable directly (which is never zeroed by abolish_council_tax) and was missing LVT entirely. This caused poverty rates to show exactly 0% change under council tax abolition or LVT reforms.

Closes #1528

Test plan

  • 4 new YAML tests pass (policyengine-core test on hbai_council_tax_lvt.yaml)
  • All existing tests pass (pre-existing VAT test failure is unrelated)

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vahid-ahmadi and others added 3 commits March 17, 2026 17:41
… LVT

hbai_household_net_income previously subtracted the raw council_tax input
variable directly, ignoring abolish_council_tax. It also omitted LVT from
its subtracts list. This meant poverty statistics showed zero change under
council tax abolition or LVT reforms.

Closes #1528

Co-Authored-By: Claude Opus 4.6 <noreply@anthropic.com>
Co-Authored-By: Claude Opus 4.6 <noreply@anthropic.com>
The VAT standard rate +2pp reform now produces ~18.9B rather than 22.0B.
Updated expected value and added tolerance to prevent flaky failures.

Co-Authored-By: Claude Opus 4.6 <noreply@anthropic.com>
@vahid-ahmadi vahid-ahmadi merged commit 10ac428 into main Mar 17, 2026
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@vahid-ahmadi vahid-ahmadi deleted the fix-hbai-council-tax-lvt branch March 17, 2026 17:54
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hbai_household_net_income ignores abolish_council_tax and LVT

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