Discussion Question $5-9($L$0.2,4)$

Casey is in the $12\%$ marginal tax bracket, and Mei is in the $35\%$ marginal tax bracket. Their employer is experiencing financial difficulties and cannot continue to pay for the company's health insurance plan. The annual premiums are approximately $$8,000$ per employee. The employer has proposed to either $(1)$ require the employee to pay the premiums or $(2)$ reduce each employee's pay by $$10,000$ per year with the employer paying the premium.

Which option is less objectionable to Casey, and which is less objectionable to Mei?

Casey would find the $!$ less objectionable since she would be "better off" by $ $x.$ Mei would find the second option $c$ less objectionable since she would be "better off" by $