If the personal income tax rate is lowered from 40% to 33%, what is the differential savings for a tax payer having an annual income before tax to the tune of $45000?  Choose the correct choice from the following answers
A) $3500
B) $5000
C) $3150
D) $7000
E) $10000
Saving = (40-33)% of 45000 = 3150.   Answer:$3150
<result>C</result>
If the personal income tax rate is lowered from 40% to 33%, what is the differential savings for a tax payer having an annual income before tax to the tune of $45000?