Boeing is considering opening a plant in one of two neighboring states, Oregon or California. Let's just say, California has a corporate tax rate of 15%. If operated in this state, the plant is expected to generate $1,200,000 pretax profit. In Oregon state has a corporate tax rate of 5% and operation in Oregon state, the plant is expected to generate $1,085,000 of pretax profit. Which state should Boeing choose based upon tax considerations only? Why do you think the plant in the state with a lower tax rate would produce a lower pretax income