Hi All, On page 115 of CFA curriculum book 2, the article mentioned “strictly speaking the inflation rate should be adjusted upward by the portfolio’s average tax rate”. I am a bit of clueless with the rationale behind it. I thought one of reasons could be, tax office tend to adjust tax rate in response to inflation in preceding year, but it is usually has something to do with personal tax rate. Nevertheless in this case the figures are after tax assets vs after tax spending target, and I would argue that if it is the nominal before tax return we are after, then it is not the inflation being adjusted, but conceptually “nominal after tax return”. But since the wording in the text are “…after-tax nominal return objective…”, my concern does not seem to be the focus either. Any opinion would be greatly appreciated.