Suppose you are about to start an innovative, high-tech company in one of two states. You expect before-tax profits to be about $100,000 per year. Both states have similar living conditions, climate, and other amenities, but the tax rate in state A is 17 percent, while the tax rate in state B is 7 percent. By how much will your annual after-tax profits differ between the two states? From a business perspective, which state is a preferred location?