How will the tax deduction affect the budget line

Reference no: EM13222786

Sam is subject to a 40 percent tax on income, and her after-tax income is 90,000. Now suppose the government permits her to deduct her contributions (to oscar0 from her income before the 40 percent tax rate is applied. How will this deduction affect her budget line?

Reference no: EM13222786

Questions Cloud

What will happen in the long run to the price of fertilizer : Assuming there is no change in demand or the firms cost curves, explain what will happen in the long run to the price of fertilizer, marginal cost, average total cost, quantity supplied by each firm, and the total quantity supplied to the market.

How to calculate the solubility : The Ksp of CaSO4 is 4.93× 10-5. Calculate the solubility (in g/L) of CaSO4(s) in 0.300 M Na2SO4(aq) at 25 °C.

How much output must the firm produce to break even : A firm that has total fixed costs of $60,000 sells its output for $250 per unit and has an average variable cost of $200. If the firm's cost and revenue curves are linear, how much output must the firm produce to break even

Explain methane has a henry''s law constant : Methane has a Henry's Law constant (k) 9.88x10^-2 mol/Latm when dissolved in benzene at 25degrees C. How many grams of CH4 will dissolve in 3.00L of benzene if partial pressure is 1.48atm?

How will the tax deduction affect the budget line : Sam is subject to a 40 percent tax on income, and her after-tax income is 90,000. Now suppose the government permits her to deduct her contributions (to oscar0 from her income before the 40 percent tax rate is applied. How will this deduction affe..

Explain when ebay gets introduced to the market : As everyone knows, eBay knows, eBay allows buyers and sellers from around the world to meet in an electronic market place and make trades Search engines, ratings of trading histories, and various other eBay details make trading very inexpensive.

Explain the freezing point of the solution : Thyroxine, an important hormone that controls the rate of metabolism in the body, can be isolated from the thyroid gland. If 0.455 g of thyroxine is dissolved in 10.0 g of benzene, the freezing point of the solution could be measured as 5.144oC.

Explain how many times faster will the reaction occur : The activation energy of a certain reaction is 77.3 kj/mol. How many times faster will the reaction occur at 41 degrees celcius than at 0 degrees celcius?

Explain nuclear disintegrations per second : The activity of a radioactive sample is the number of nuclear disintegrations per second, which is equal to the first-order rate constant times the number of radio-active nuclei present.

User Account

All Pages