Sam owns and operates a part-time service business that generates $80,000 annual taxable income. His...
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Accounting
Sam owns and operates a part-time service business that generates $80,000 annual taxable income. His federal tax rate on this income is 17%. Because of recent legislation, this rate will increase to 25% next year?
How much will government revenue change if Sam decides to work fewer hours and consequently earns only $50,000 next year?
A. $6,400
B. $12,500
C. $-1,100
D. $-2,400
E. None of the Above
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