Suppose two people live in a society that has a 25% income tax.Both people have pretax income of $40,000.In period 1,there was no tax deduction; Lillian gave $6,000 to charity; and Susie gave $4,000 to charity.In period 2,the government makes charitable donations tax deductible,and Lillian gives $8,000.What is the amount Susie must give in period 2 so that the marginal impact of the tax break is equal to the inframarginal impact of the tax break?

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The Answer of Suppose two people live in a society that has a 25% income tax.Both people have pretax income of $40,000.In period 1,there was no tax deduction; Lillian gave $6,000 to charity; and Susie gave $4,000 to charity.In period 2,the government makes charitable donations tax deductible,and Lillian gives $8,000.What is the amount Susie must give in period 2 so that the marginal impact of the tax break is equal to the inframarginal impact of the tax break?

Suppose Two People Live in a Society That Has a 25