Use some thinking to answer the following question. If the personal income tax rate is lowered from 42% to 28%, what is the differential savings for a tax payer having an annual income before tax to the tune of $34500?
Options:
(A) $3500
(B) $5000
(C) $4830
(D) $7000
(E) $10000
Saving = (42-28)% of 34500 = 4830. So the final answer is (C).