calculate the tax disadvantage to organization a U.S. business today after passage of the Jobs and Growth Tax Relief Reconciliation Act of 2003 as a
corporation vs. a partnership under the following conditions. Assume that all earnings will be paid out as cash dividends. Operating income (operating profit
before taxes) will be $500000 per year under either organizational form; the effective corporate profits tax rate is 35%( Tc=0.35); the averafe personal tax
rate for the partners of the business is also 35% ( Tp=.35); and capital gains tax rate on dividend income is 15% (Tcg= .15). Then recalculate the tax
disadvantage using the same income but with the maximum tax rates that existed before 2003. These rates were 35% (Tcg=.15) on corporate profits and 38.6 %
(Tp=.386) on personal investment income.