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Mr. and Mrs. J own a dry cleaning business that generates $129,750 taxable income each year. For the past few years, the couple's federal tax rate on this income has been 32 percent. Congress recently increased the tax rate for next year to 40 percent. a. Based on a static forecast, how much additional revenue will the federal government collect from Mr. and Mrs. J next year? b. How much additional revenue will the government collect if Mr. and Mrs. J respond to the rate increase by working harder and earning $144,750 next year? c. How much additional revenue will the government collect if Mr. and Mrs. J respond to the rate increase by working less and earning only $114,750 next year? Complete this question by entering your answers in the tabs below. Required A Required B Required C Based on static forecast, how much additional revenue will the federal government collect from Mr. and Mrs. J next year? Additional revenue Required B Required A Complete this question by entering your answers in the tabs below. Required A Required B Required C How much additional revenue will the government collect if Mr. and Mrs. J respond to the rate increase by working harder and earning $144,750 next year? Additional revenue Required A Required C Complete this question by entering your answers in the tabs below. Required A Required B Required C How much additional revenue will the government collect if Mr. and Mrs. J respond to the rate increase by working less and earning only $114,750 next year? Additional revenue Required C> Required B

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