Question: Answer B and C . Mr . and Mrs . Jerald own a dry cleaning business that generates $ 1 7 6 , 2 5

Answer B and C

.

.

and Mrs

.

Jerald own a dry cleaning business that generates $

176, 250

taxable income each year. For the past few years,

the couple's federal tax rate on this income has been

32

percent. Congress recently increased the tax rate for next year to

40

percent.

Required:

.

Based on a static forecast, how much additional revenue will the federal government collect from Mr

.

and Mrs

.

Jerald next

year?

.

How much additional revenue will the government collect If Mr

.

and Mrs

.

Jerald respond to the rate Increase by working

harder and earning $

191, 250

next year?

.

How much addilional revenue will the government collect If Mr

.

and Mrs

.

Jerald respond to the rate Increase by working

less and earning only $

161, 250

next year?

Complete this question by entering your answers in the tabs below.

Based on a static forecast, how much additional revenue will the federal government collect from Mr

.

and Mrs

.

Jerald next

year?

Answer B and C . Mr . and Mrs . Jerald own a dry

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