Assumptions > Taxes - What does Percentage change in taxes really mean?

Under Assumptions > Taxes:
Is the data item "Percentage change in taxes" expressed in points or pct? If my marginal rate is 35%, would a 2% value in this field take it to:
- 37% (ie - a 2-point increase) OR
- 35.7% (ie - a 2% increase)
I'm guessing the latter, but it would be nice if the explanation in the online help would clarify that.



Well, I've been assuming it meant a 2% increase in TOTAL taxes, not the marginal rate. Be interesting to hear the answer.

dan royer's picture

What I observe is that the Net taxes go up by that percentage amount. So I ran a case where the Fed Tax is 20,736, but the Net Tax is consequently 31,105 which reflects the assumed 50% increase that I assumed.

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