Mr$.$ and Mrs$.$ Jerald own a dry cleaning business that generates $$143,250$ taxable income each year. For the past few years, the couple$$s federal tax rate on this income has been $32$ percent. Congress recently increased the tax rate for next year to $40$ percent.

Required:

Based on a static forecast, how much additional revenue will the federal government collect from Mr$.$ and Mrs$.$ Jerald next year?

How much additional revenue will the government collect if Mr$.$ and Mrs$.$ Jerald respond to the rate increase by working harder and earning $$158,250$ next year?

How much additional revenue will the government collect if Mr$.$ and Mrs$.$ Jerald respond to the rate increase by working less and earning only $$128,250$ next year?