4. Ed and Wendy are a married couple with no children. Each earns $75,000 per year, and their combined household adjusted gross income is $150,000. John and Kristen also have $150,000 in combined household adjusted gross income and no children. However, Kristen earns all of the income; John does not work. Suppose that each family has an exemption of $3,950 per person. The standard deduction is $6,200 for a single taxpayer and $12,400 for married couples.

a. Use the following tax rates for married couples filing jointly to compute how much income tax each couple owes. Assume that both take the standard deduction.

Taxable Inc0me	Marginal Tax rate
$0 to $18,150	10%
$18,151 to $73,800	15%
$73,801 to $148,850	25%
$148,851 to $226,850	28%
$226,851 to $405,100	33%

b. Use the following tax rates for single taxpayers to compute how much income tax each person owes if they do not get married. Does either couple pay a marriage tax? Does either couple receive a marriage benefit?

Taxable Income	Marginal Tax rate
$0 to $9,075	10%
$9,076 to $36,900	15%
$36,901 to $89,350	25%
$89,351 to $186,350	28%
$186,351 to $405,100	33%