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Please use the numbers provided when answering. Thank you! Suppose that Congress sets the top personal tax rate on interest and dividends at 44% and

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Please use the numbers provided when answering. Thank you!

Suppose that Congress sets the top personal tax rate on interest and dividends at 44% and the top rate on realized capital gains at 20%. The corporate tax rate stays at 23%. Assume capital gains are half of equity income. a. Compute the difference between the total corporate plus personal taxes paid on debt and the total taxes on equity income if all capital gains are realized immediately. (Do not round intermediate calculations. Round your answer to 4 decimal places.) Difference 0.4239 b. Compute the difference between the total corporate plus personal taxes paid on debt and the total taxes on equity income if all capital gains are deferred forever. (Do not round intermediate calculations. Round your answer to 4 decimal places.) Difference $ 0.5525

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