If a company provides a group hospitalization insurance plan for all employees and charges each employee for the premium. The premium is $7,000 for each employee, and none of the employees can deduct the medical insurance from their taxes since they do not meet the 7 1/2 percent floor. The company is considering paying for employees insurance next year in place of raises. If the company adopts this change, the employee's after-tax and insurance pay will:

	a.	Decrease by the same amount for all employees.
	b.	Increase more for the lower paid employees (10% and 15% marginal tax bracket).
	c.	Increase more for the higher income (35% marginal tax bracket) employees.
	d.	Increase by the same amount for all employees.