Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 21 - Health Care - Problems - Page 453: 2b

Answer

${$1,000}$ in taxes. ${$4,000}$ after tax for health insurance.

Work Step by Step

Vanessa will be forced to pay 20% of her ${$5,000}$ raise in taxes, so she will have to pay $5,000\times 20\%={$1,000}$ in taxes, and therefore will have $5,000-1,000=\$4,000$ after tax to pay for health insurance.
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