If the personal income tax rate is lowered from 45% to 30%, what is the differential savings for a ...

If the personal income tax rate is lowered from 45% to 30%, what is the differential savings for a tax payer having an annual income before tax to the tune of $48000?

Answer/Solution

$7200

Steps/Work

Saving = (45-30)% of 48000 = 7200.
Answer:D

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If the personal income tax rate is lowered from % to %, what is the differential savings for a tax payer having an annual income before tax to the tune of $ ?

Calculated Answer

7200

Step by Step Solution

In order to solve problem, you must evaluate n₂ / 100 * (n₀ - n₁).

n₀ =	45
n₁ =	30
n₂ =	48000

n₂ / 100 * (n₀ - n₁)
Evaluate n₂ / 100 = 480
480 * (n₀ - n₁)
Evaluate n₀ - n₁ = 15
480 * 15
Evaluate 480 * 15 = 7200
7200
The answer to the problem and the result of n₂ / 100 * (n₀ - n₁) is 7200

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