Income for individual in economics is calculated after the tax or before the tax ? Becasue while generating budget constraints if say below 10 lakh there no tax , between 10 to 15 lakh there is 10% tax then person earning 11 lakh actually earn 9.9 lakh ,then how to draw budget constraint in such cases of net income ?
Also if one can show how budget constraint in differnt tax slab looks like it would be really good.
Income for individual in economics is calculated after the tax or before the tax ? Becasue while generating budget constraints if say below 10 lakh there no tax , between 10 to 15 lakh there is 10% tax then person earning 11 lakh actually earn 9.9 lakh ,then how to draw budget constraint in such cases of net income ?
Also if one can show how budget constraint in differnt tax slab looks like it would be really good.