Suppose That There Is a Flat 25% Income Tax but That

Suppose that there is a flat 25% income tax but that the U.S.tax policy with respect to health insurance remains the same.You make $25,000 per year and wish to buy a $2,000 health insurance policy.Are you better off,worse off,or neither better nor worse off if your employer buys the policy and deducts the $2,000 from your wages than if you buy the policy yourself? By how much?

A) better off; $500
B) worse off; $500
C) no better or worse off; $0
D) better off; $250