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Mr. and Mis. Jerald own o dry cleaning business that generates $176,250 taxable income each year. For the past fow years, the couple's federal tax
Mr. and Mis. Jerald own o dry cleaning business that generates $176,250 taxable income each year. For the past fow years, the couple's federal tax rate on this income has been 32 percent. Congress recently increased the tax rate for next year to 40 percent. Required: a. Based on a stetic forecast, how much additional revenue will the federal government collect from Mc. and Mrs. Jerald next year? b. How much addltional revenue will the government collect if Mr, and Mrs. Jerald respond to the rate increase by working harder and eoming $191,250 next year? c. How much additional revenue will the government collect if Mi. and Mrs. Jerald respond to the rate increase by working less and eeming only $161,250 next yea? Complete this question by entering your answers in the tabs below. Based on a stabc forecast, how much addaional revenue will the federal government collect from Me. and Mrs. Jerald next yesp? Complete this question by entering your answers in the tabs below. How much additional rovenue will the government colject if Mr. and Mra. Jerald cespond to the rate increase by working harder and earning 5191,250 next yean? Complete this question by entering your answers in the tabs below. How much adoitional revenue will the government collect if Mr. and Mrs. Jerald respond to the rate increase by working less and earning onty 1161,250 neat year
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