$npx -y skills add PolicyEngine/policyengine-claude --skill policyengine-user-guideUsing the PolicyEngine web app (policyengine.org) to analyze how tax and benefit reforms affect a household or the whole population — the household calculator, the policy editor, and society-wide impact charts. For people using the site, not building it. Triggers: "how to use Pol
| 1 | # PolicyEngine user guide |
| 2 | |
| 3 | Help someone use policyengine.org to compute how a policy affects a specific household or the |
| 4 | population. The app has three stable surfaces: a **household calculator**, a **policy editor**, |
| 5 | and **society-wide impact** results. Exact labels and layout evolve — describe the flow by these |
| 6 | concepts rather than memorized button text. |
| 7 | |
| 8 | ## What PolicyEngine does |
| 9 | |
| 10 | PolicyEngine computes the impact of tax and benefit policy on households and society. Users can |
| 11 | calculate their own taxes and benefits, design a custom reform, see population-wide impacts, and |
| 12 | share a reform by link. It is a nonpartisan nonprofit; the site is free. |
| 13 | |
| 14 | Countries: United States (`policyengine.org/us`), United Kingdom (`/uk`), and Canada (`/ca`). |
| 15 | |
| 16 | ## Household calculator |
| 17 | |
| 18 | The household flow answers "how does this policy affect *this* household?" |
| 19 | |
| 20 | 1. **Describe the household.** Enter the people (ages, marital status, dependents), their income |
| 21 | by type (employment, self-employment, capital gains, pensions, benefits received), the |
| 22 | location (US state or UK region, plus any local options the model supports), and any |
| 23 | deductions/expenses the model uses (e.g. charitable giving, mortgage interest, SALT, medical). |
| 24 | 2. **Read the results.** Net income after taxes and benefits, broken into total tax, total |
| 25 | benefits, and effective and marginal tax rates, with charts of net income and marginal rate |
| 26 | across an earnings range. |
| 27 | 3. **Apply a reform.** Layer a policy reform on top to compare baseline vs. reform for the same |
| 28 | household. |
| 29 | |
| 30 | ## Policy editor |
| 31 | |
| 32 | The policy flow answers "what does this reform do to the population?" |
| 33 | |
| 34 | 1. **Pick parameters to change.** Browse the parameter tree by government department and program |
| 35 | (e.g. IRS credits, SNAP, Universal Credit), select a parameter, and set a new value or |
| 36 | schedule. Verify the parameter's current baseline before changing it — post-OBBBA US law |
| 37 | differs from older summaries (e.g. the CTC baseline is $2,200 in 2026, not $2,000). |
| 38 | 2. **Run the society-wide impact.** The app computes the reform against microdata and returns: |
| 39 | - **Budgetary impact** — total cost or revenue, broken down by program. |
| 40 | - **Poverty impact** — change in poverty rate, by age group and for deep poverty. |
| 41 | - **Distributional impact** — average change and winners/losers by income decile. |
| 42 | - **Inequality impact** — Gini index and top-income shares. |
| 43 | |
| 44 | ## Sharing a reform |
| 45 | |
| 46 | Every reform gets a shareable URL. The link encodes the reform, the region (national, state, or |
| 47 | district), and the year of analysis, so a recipient opens the same scenario. Charts can be |
| 48 | downloaded as images to drop into a post or deck. |
| 49 | |
| 50 | ## Reading the results |
| 51 | |
| 52 | - **Supplemental Poverty Measure (SPM):** the Census Bureau's alternative measure that accounts |
| 53 | for taxes, benefits, and living costs — more comprehensive than the Official Poverty Measure. |
| 54 | - **Gini coefficient:** income inequality on a 0 (perfect equality) to 1 (perfect inequality) |
| 55 | scale; lower means more equal. |
| 56 | - **Income deciles:** the population split into ten equal groups by income (decile 1 = lowest). |
| 57 | - **Winners and losers:** shares whose net income rises or falls by more than a set threshold. |
| 58 | - **Chart types:** bar charts compare across groups (deciles, states); line charts show |
| 59 | relationships (income vs. impact); waterfall charts decompose the budgetary impact. |
| 60 | |
| 61 | ## Common tasks |
| 62 | |
| 63 | - **Effect on my household:** household calculator → enter details → apply the reform → compare. |
| 64 | - **Cost of a reform:** policy editor → build the reform → budgetary impact. |
| 65 | - **Poverty effect:** policy editor → build the reform → poverty impact. |
| 66 | - **Who benefits:** policy editor → build the reform → distributional impact (winners/losers by |
| 67 | decile). |
| 68 | - **Compare two reforms:** build reform A, save its link, build reform B, compare their impacts. |
| 69 | |
| 70 | ## FAQ |
| 71 | |
| 72 | - **How accurate is it?** Household calculations apply statutory tax and benefit rules and match |
| 73 | official calculators for individual households. Population estimates use microsimulation on |
| 74 | survey microdata calibrated to administrative totals. |
| 75 | - **Can I file my taxes with it?** No — it is for policy analysis, not tax filing. Use IRS.gov or |
| 76 | professional software to file. |
| 77 | - **What programs are modeled?** US: federal income/payroll/capital-gains tax, EITC, CTC/ACTC, |
| 78 | SNAP, WIC, ACA subsidies, Social Security, SSI, TANF, and state income taxes; UK: income tax, |
| 79 | National Insurance, Universal Credit |