Sam owns and operates a part-time service business that generates $80,000 annual taxable income. His federal tax rate on this income is 17%. Because of recent legislation, this rate will increase to 25% next year?

How much will government revenue change if Sam decides to work fewer hours and consequently earns only $50,000 next year?

A. $6,400

B. $12,500

C. $-1,100

D. $-2,400

E. None of the Above