marginal tax
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 12DQ
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Question
Transcribed Image Text:Joey has been offered a job at a salary that would put him in the 24% marginal tax
bracket. In addition to his salary, he would receive health insurance coverage.
Another potential employer does not offer health insurance but has agreed to match
the first offer on an after-tax and insurance basis. The cost of health insurance
comparable to that provided by the other potential employer is $6,000 per year.
How much more in salary must the second potential employer pay so that Joey's
financial status will be the same under both offers?
$6,000
$7,895
$7,440
$744
$1,440
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