It is 2018. The company you founded called Mineral Gells had earnings before tax of $100,000,000 this year (congratulations!). You are the company's sole owner. The corporate tax rate is 21%, you are in the 37% marginal bracket, and your dividends are taxed at 20%.

a. Mineral Gells is a C-corporation and pays out 50% of its income in the form of dividends. How much do you personally have to pay in taxes, and what is your after-tax dividend?

b. Mineral Gells is an S-corporation and does a 50% distribution of income. The new tax code allows you to exclude 20% of your business income from taxation; this means you pay taxes only on 80% of the business income.  How much do you personally have to pay in taxes, and what is your after-tax dividend? How would this change if you were not allowed the 20% exclusion?