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Consumption smoothing and tax liability

In studying the documentation, I find myself unsure if the household tax liability is subtracted before the annual consumption number is calculated. Or the same question in another form - does the household include the tax liability in their annual consumption number? Thanks for the help.

1

No, consumption is what's left after all other spending (see total spending report) *and* after taxes. Your consumption number is what you have left to spend after taxes and after all the other things you see on the spending report.