to the state tax; are the state inco income taxes and, if so, are they linked taxes linked to the federal income taxes; are the rates graduated, are there ref erences in the state taxes that are not also in the federal taxes; and are the s taxes indexed? 2.)A midwestern state aids its institutions of higher education by giving a credit against its income tax equal to 50 percent of any gift to such institutions (subject to a limit of $50 credit per person). Two residents of that state, Mr. Blue (in the 10 percent federal tax bracket) and Ms. Jones (in the 35 percent federal tax bracket), each contribute $100 to an eligible state university. a. How much will the state tax liabilities of each change as a result of their gifts? b. State income tax payments and contributions to charitable organizations (such as universities) are both currently deductible from the base used to compute