Q: If the personal income tax rate is lowered from 46% to 32%, what is the differential savings for a tax payer having an annual income before tax to the tune of $36000?
Options:
(A) $3500
(B) $5040
(C) $3150
(D) $7000
(E) $10000 Let's give some random thoughts before answering.
Saving = (46-32)% of 36000 = 5040.
Therefore, the answer is (B).