If income tax goes up from 20% to 30%, has it increased by 10% or by 50%?

Question

Bizarre question, I realise. What I mean is this: with absolute values, you would say, for example, that an increase from 20 employees to 30 employees is a 50% increase: 50% of 20 is 10, 10 + 20 = 30. Everybody's happy. But as the values I'm speaking about are already percentages, it seems potentially confusing. In statistical analysis, is there any terminology to differentiate between the two values in my titular question? Or if somebody says 'sales tax was 10% but it's gone up by 25%', am I merely to guess whether the new tax rate is 35% or 12.5%?

Sorry if this question was confusingly worded...

Answer 1

YOUR EXPENDITURE ON TAX WILL BE 50% HIGHER, BUT TAX INCREASE IS ONY 10%.
Because when you calculate increase in percentage, your base should be 100, no 20, so in 100 the rise is 10 ( 30-20), so tax rise is 10%.

Answer 2

That's a 50% increase.

Use to be 20
Increase to 30 or 10 more
10 is half of 20 - 50% increase

Yes, the sales tax is 12.5 %.

You are right, these will be confusing and it is an example of how you can get statistics to say whatever you want. In the sales tax case the media would be reporting the percentage increase to make is sound large, while the politicians would be reporting the incremental increase to make it sound small.

Answer 3

Going from 20 to 30 is an increase that is half again as much as it was, so 50% increase.

Answer 4

This question proves the saying that you can make numbers say anything you want them to. To put it to you this way, both are correct. It just matters on what you are trying to accomplish. For instance: A politician (A) wants to raise taxes, so he says we will only increase your tax rate by 10%. But, politician (B) who is against the tax hike will tell the people that their taxes will increase by 50%. Neither one of them are wrong, but neither are right either. What is happening is that numerically the tax was raised by 10%, but monetarily the government will be taking 50% more of your income than the were before. Hope this helps. just remember that numbers can say anything you want them to.

Answer 5

I'd say the increase was a 50% jump ... and the sales tax figure would now be 12.5%. As for any different terminology to help you ... sorry.

Answer 6

Both, and you must specify. It is how politicians are able to lie about tax increases/decreases. They pick whichever number that makes them look good to their potential voters and do not tell the whole truth.

10% = Absolute increase
50% = Percentage increase

Percentage increase is the best and most accurate way.
.

Answer 7

50%, because 10% is 50% of 20%.

Answer 8

The taxation rate has gone up 50% but the rate of taxation has gone up 10%. e.g. 'taxation rate' implies the amount someone is taxed as the prime entity - sales tax rate.

But the 'rate of taxation' implies the income as the prime entity with the deducted amount (taxation) as the secondary entity. - rate of taxation on one's wages.

Answer 9

It has increased 50%.
The second one is 12.5%.

Answer 10

10% of course.