How do you calculate a 2% discount on taxes?

To calculate a 2% discount on taxes, the appropriate method involves reducing the total amount by 2%. Multiplying the total taxes by a percentage fraction that reflects the remaining amount after the discount is the correct approach.

Using "Taxes x 0.98" effectively calculates the total taxes multiplied by the remaining 98% after applying the 2% discount. This lands you at the correct, reduced tax amount. However, the option that indicates "Taxes x 98%" actually serves the same function because it directly communicates a multiplication of the total taxes by 98, aligning with the percent representation.

Conducting the calculation this way provides a straightforward means to determine the taxes owed after the discount is applied, ensuring clarity in financial transactions such as tax payments or bill reductions.