I'm modeling a household income event, and have the gross household income and then the net income to be modeled (less payroll taxes). Gross household income is within the $70-100k range, but once payroll taxes are netted out it drops into the lower category. Which is the appropriate category to model the impact?
Gross v. Net Household Income to Categorize
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Good morning Sean!
So you definitely would not include those payroll taxes in there, because Household Income Events are going to be for modeling changes in Household Income isolated from Industry production and payroll. Just to make sure we are on the same page, the Household Income groups are meant to reflect the total Household Income for the workers who actually receive the Income, not the total amount that you are modeling. So for instance, you could model $10M worth of new Household Income to be received by Households that earn between $70-100k.
Hope this helps!
Michael Nealy
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