Suppose you make $40,000 per year and face a 20% marginal tax rate on taxable income. (In fact, suppose everyone has a 20% marginal rate because there is only 1 bracket for all taxable income.)

If your employer pays for your $4,000 per year insurance policy and deducts the expense from your salary, you would have how much after paying for insurance and taxes? Would you have more or less $ left over if you paid for the policy directly? Briefly explain.