ram Rachel receives employer provided health insurance. The employer's cost of thehealth insurance is $6,100 annually. What is her employer's after-tax cost ofproviding the health insurance, assuming that the employer's marginal tax rateis 21 percent and is profitable?

The after-tax cost of an expense is the amount of money spent on an expense minus the amount of the…

Answered: Rachel receives employer provided…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter8: Taxation Of Individuals

Section: Chapter Questions

Problem 52P

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Rachel receives employer provided health insurance. The employer's cost of the health insurance is $6,100 annually. What is her employer's after-tax cost of providing the health insurance, assuming that the employer's marginal tax rate is 21 percent and is profitable?