11. A small business subject to a Federal marginal tax rate of 30% (and no state income tax) pays (a tax deductible) $1,000 to a consultant who provides consulting services to the small business. The $1,000 is taxable income to the consultant who is subject to a marginal tax rate of 12% (and no state income tax). Because of this transaction, how much less tax is paid to the Federal government? EXTRA CREDIT 12. A business located in Maryland is subject to a Federal marginal tax rate of 20% is also subject to an 8% Maryland state marginal tax rate. The state tax is a deductible expense from Federal income. What is the total marginal tax rate (Federal plus Maryland)