solution

During? 2015, the Smiths and the Jones both filed joint tax returns. For the tax year ended December? 31, 2015, the? Smiths’ taxable income was $116,000?, and the Jones had total taxable income of $58,000.

Using the federal tax rates given in Table 1.2 for married couples filling joint returns, calculate the taxes for both the Smiths and the Jones.

Taxable Income
Tax Rates Joint Returns
10% $0 to $18,150
15% $18,151 to $73,800
25% $73,801 to $148,850
28% $148,851 to $226,850
33% $226,851to $405,100
35% $405,101 to $457,600
39.6% Over $457,600

Calculate and compare the ratio of the Smiths to the Jones taxable income and the ratio of the Smiths to the Jones’ taxes. What does this demonstrate about the federal income tax structure?