2. Consider the following 2006 personal income tax schedule obtained from the IRS website. It applies to a married couple who are combining their incomes and filing jointly.

a. What is the tax due for a couple where each spouse has a taxable income of $25,000?

b. Use the results from the preceding question to compare the tax the couple would have paid if they were not married (and filed as single persons)
to the amount of tax they pay as a married couple (filing jointly).

c. What is the tax due for a couple where one spouse has a taxable income of $50,000 and the other spouse has no taxable income?

d. Does the tax system treat households making the same amount of income in an identical manner?
Can it do so while remaining a progressive system?

Transcribed Image Text:

If Taxable Income Is Over But Not Over The Tax Is $0 $15,100 $15,100 10% of the amount over $0 $61,300 $1,510 plus 15% of $61,300 $123,700 the amount over $15,100 $8,440 plus 25% of the amount over $61,300