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Lars Osberg, a single taxpayer with a 35 percent marginal tax rate, desires health insurance. Volvo, his employer, has a 21 percent marginal tax rate.
Lars Osberg, a single taxpayer with a 35 percent marginal tax rate, desires health insurance. Volvo, his employer, has a 21 percent marginal tax rate. The health insurance would cost Lars $8,500 to purchase if he pays for it himself through the health exchange (Larss AGI is too high to receive any tax deduction for the insurance as a medical expense). Answer the following questions about this benefit.
Will Volvo and Lars be able to reach an agreement by which Volvo will provide Larss health insurance?
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