If the personal income tax rate is lowered from 45% to 30%, what is the differential savings for a tax payer having an annual income before tax to the tune of $48000?  Choose the correct answer.
A) $3500
B) $5000
C) $3150
D) $7200
E) $10000
Saving = (45-30)% of 48000 = 7200.   Answer:$7200
<result>D</result>
If the personal income tax rate is lowered from 45% to 30%, what is the differential savings for a tax payer having an annual income before tax to the tune of $48000?