Mr. and Mrs. J's taxable income from their business has been stable for the past 5 years, and their average federal income tax rate has ranged between 22 and 24 percent. Because of a boom in the local economy, the couple estimates that their business will generate an additional $100,000 taxable income next year. In making their cash flow projections, they estimate that their federal income tax cost with respect to this incremental income will be $24,000.
Identify the tax issue or issues suggested by the following situations, and state each issue in the form of a question