_____ 5. A rational taxpayer in the 25% tax bracket who wants health insurance would prefer the employer pay the $5,000 premium for this health insurance rather than receive a $5,000 increase in salary to purchase health insurance on his own.

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This is because if the employer pays the premium, it is not considered part of the employee's taxable income, but if the employee receives it as salary, it will be subject to taxes. Therefore, paying the premium directly through the employer is more tax-efficient for the employee.

_____ 5 a Rational Taxpayer in the 25% Tax Bracket Who