Feature/tax donor wage growth uprating#460
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justin-ven merged 6 commits intosimpaths:developfrom May 5, 2026
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Introduces a new model parameter `taxDonorUpratingByWage` that, when enabled, scales simulated household income by the real wage growth index (TimeSeriesVariable.WageGrowth) before nearest-neighbour matching against the tax donor database. When disabled (default), the existing price-growth-only behaviour is preserved. In both cases, imputed financial flows are deflated back to BASE_PRICE_YEAR (2015) using price inflation only (TimeSeriesVariable.Inflation). The option is exposed as a JAS-mine @GUIparameter checkbox in SimPathsModel, is configurable via YAML (taxDonorUpratingByWage), and is written to the per-run config output file. Co-Authored-By: Claude Sonnet 4.6 <noreply@anthropic.com>
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This pull request introduces a new model switch (taxDonorUpratingByWage) that allows tax database matching to be undertaken in a way that discounts for real wage growth.
The tax database stores all values in prices prevailing in the respective system year. The default model specification - in place prior to the current adjustment - discounts all monetary values by price growth to a reference year (Parameters.BASE_PRICE_YEAR). The default model specification also typically allows for projecting real wage growth through time. These two features imply that the default model projections will generally see tax bracket creep and marginalisation of welfare benefits (relative to wages) through time.
The new functionality (switched on by taxDonorUpratingByWage=true), adjusts all monetary data stored in the tax database by real wage growth in addition to price deflating as described above. This adjustment will off-set the tax bracket creep and benefits marginalisation noted above. For example, when imputing taxes and benefits for someone in 2040 using a database system reporting data for 2030, the original income used for matching of someone in the reference database will be grossed up for wage growth in the 10 years between 2030 and 2040. Furthermore, once a donor has been identified, then the tax and transfer payments of the donor will also be uprated for wage growth when imputing these into the model.