Paul is in the 15 marginal tax bracket and Betty
Paul is in the 15% marginal tax bracket, and Betty is in the 35% marginal tax bracket. They each pay $6,300 in health insurance premiums for themselves and their families. Their employer has offered to provide group health insurance, but each employee would have to forgo a $7,000 salary increase. How would the change in compensation affect Paul, Betty, and the employer?
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