What is tax planning, and how is it related to savings and investment planning? Tax planning involves evaluating your current and projected earnings and developing strategies that can legally and/or your tax liability. As it is currently written, the U. S. tax code recognizes several types of taxable income, including: Active, or ,income Passive income Portfolio, or ,income Tax-deferred and/or tax-free income Tax planning is closely related to savings and investment planning, because tax-reducing strategies often involve the use of tax-deferred or tax-free investments Tax-free investments are so called because the interest or other income paid to their owners is federal, and, perhaps, state taxes. Owners of tax-deferred investments, on the other hand, are allowed to paying taxes on any returns generated by the investment.

German brothels recently began offering a monthly subscription service for multiple purchasers. if you thought that the brothels' encouragement of prostitution was immoral to begin with, would you consider this pricing plan to be even more immoral? suppose a particular patron at a german brothel has the following willingness-to-pay schedule for services at the brothel, per session. session willingness to pay 1st $84 2nd $72 3rd $60 4th $48 5th $36 6th $24 suppose this consumer would not demand any more sessions, even for free. also assume that the marginal cost to the brothel, per session, is constant at $12. at a price of $78.00 per session, the number of sessions demanded by this consumer would be . at this price and quantity, consumer surplus is $ and producer surplus is $ . suppose the brothel has devised a new pricing scheme for consumers who demand more than 1 session. this pricing scheme is a subscription service, whereby consumers can pay a flat fee of $259.20 and can have up to 6 sessions total. using this subscription pricing model, this consumer would demand sessions. under this scenario, consumer surplus is $ and producer surplus is $ . (hint: for consumer surplus, consider how much total value the consumer places on all sessions, versus the total price paid.)