Harrison is subject to a 40 percent overall marginal tax rate. Is he better off if he receives a tax-free fringe benefit of $4,000 than if he receives an equivalent raise in his salary? Why or why not?

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The Answer of Harrison is subject to a 40 percent overall marginal tax rate. Is he better off if he receives a tax-free fringe benefit of $4,000 than if he receives an equivalent raise in his salary? Why or why not?

Harrison Is Subject to a 40 Percent Overall Marginal Tax