taxsim32.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 31 income, deduction and personal characteristics in the calculation of taxes.
-taxsim32- is compatible with taxsim27 input files, but adds variables for the TCJA business tax deduction and is more likely to avoid firewall issues.
First, be very familiar with Internet Taxsim before using the Stata interface.
From within any Version 8 or later Stata obtain the Stata taxsim32.ado file:
-taxsim32.ado- uses the ssh protocal for communicating with our server. If it is not available on your computer (such as Windows versions before Autum 2019) or blocked by a firewall, it is possible that the "ftp" option will help. There is also an "http" option but that may not work with large files.