Imagine a question and stream-of-consciousness explanation for which this is the answer: (D)
user
Question: 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?
Options:
(A) $3500
(B) $5000
(C) $3150
(D) $7200
(E) $10000
Stream-of-consciousness: Saving = (45-30)% of 48000 = 7200.
assistant