Suppose that, in an effort to reduce the federal deficit, Congress increases the top personal tax rate on interest and dividends to 37% but retains a 12% tax rate on realized capital gains. The corporate tax rate stays at 35%. Assume capital gains are 50% of equity income.

a.Compute the total corporate plus personal taxes paid on each $1 of debt income.(Do not round intermediate calculations. Round your answer to 2 decimal places.)

Total tax=$

b.Compute the total corporate plus personal taxes paid on each $1 of equity income if all capital gains are realized immediately.(Do not round intermediate calculations. Round your answer to 4 decimal places.)

Total tax=$

c.Compute the total corporate plus personal taxes paid on each $1 of equity income if allcapital gains are deferred forever.(Do not round intermediate calculations.Round your answer to 4 decimal places.)

Total tax=$