5. Jeff Bezos can buy a lot of things, but he can't buy Danny's full head of hair. Mrs. Bezos would like to hire Danny for some light modeling (paying $1,000). In 2017, the Federal Corporate Income Tax Rate is 35%. Danny's marginal tax rate is 35%, and the dividend tax rate is 15%.

a) How much more money will Danny make if he earns this money as personal income (directly or via a pass-through entity) as opposed to setting up a C-Corporation and funneling it through there?

b) The TCJA lowered the corporate rate to 21%. If this was the only change, how would this impact Danny's decision whether or not to incorporate as a C-Corp?

c) The TCJA also allows pass-through businesses to deduct 20% of their business income. How does this impact your answer to part (b) - including the new corporate tax rate? How much after tax money can Danny make?