Indy Currently Earns $50,000 in Taxable Income and Pays $8,000

Indy currently earns $50,000 in taxable income and pays $8,000 in taxes. Suppose that Indy faces a marginal tax rate of 25 percent and his boss offers him a raise of $2,000 per year. Indy should

A) accept the raise because his after-tax income will rise by $1,500.
B) reject the raise because his after-tax income will fall by $3,000.
C) reject the raise because his after-tax income will fall by $4,500.
D) reject the raise because his after-tax income will fall by $6,000.