Modeling household income

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coladuck

• March 13, 2017 16:00

I am trying to model the impact of household increased income. For example, government tax rebate, maturity of 401K savings accounts, which I think, can all be modeled through household income change. My questions is, say, households 100-150k received 100,000 in 2017, which they have to pay tax, and they may also save part of it. When I create an activity, should I put 100,000 in the cell of household income change, or put the after tax and even after saving amount into the household income change? Thank you!

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  IMPLAN Support

  • March 14, 2017 13:11

  Hi Jackie Thank you so much for your forum post. When you run a Household Income change, your initial value, for example $100,000, should include taxes and Savings. IMPLAN will account for savings and income taxes when it runs through the impact cycle. Note: the Household Income Change spending pattern includes purchases of commodities that households typically spend their wages on (electricity, mortgage, groceries, utilities, healthcare etc.). It may be worth considering if the households in your analysis will spend their government tax rebate on those typical household items, or they will use this windfall to pay off a loan or purchase a luxury item. If you know specifically where they are going to spend, you can impact a specific industry. Regards, IMPLAN Staff

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  coladuck

  • March 14, 2017 16:33

  Thank you very much! I have a follow-up question. If I have better information on the how much tax those households pay, is it possible for me to incorporate the information in IMPLAN?

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  IMPLAN Support

  • March 23, 2017 17:52

  Hi Jackie! Would you mind clarifying what is meant by "incorporating the information in IMPLAN". Specifically, are you referring to the payroll or income taxes? Thanks!

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