Under the tax law in 2012, you could claim all of your charitable contributions as a deduction on your federal income tax (if you decided to itemize your deductions), and the top marginal tax rate was

35

percent.

What is the cost of a

$300.00

charitable contribution under the 2012 tax law for someone who itemizes and who is in the top tax bracket?

The cost of a

$300.00

contribution is

$enter your response here.

(Round

your response to two decimal

places.)

Suppose a country has a progressive tax structure where the marginal income tax rate increases with income. Assume the marginal income tax rate for a rich individual is

28

percent and the marginal income tax rate for a poor individual is

10

percent.

The cost of a

$250.00

charitable contribution for the rich individual is

$enter your response here.

(Round

your response to two decimal

places.)