Suppose that Congress sets the top personal tax rate on interest and dividends at $42\%$ and the top rate on realized capital gains at

$15\%.$ The corporate tax rate stays at $22\%.$ 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.

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.

Note: Do not round intermediate calculations. Round your answers to $4$ decimal places.

a$.$ Difference

b$.$ Difference