Ability-to-Pay Concept (LO. 2) Sheila, a single taxpayer, is a retired computer executive with a taxable income of $98,900 in 2020. She receives $32,800 per year in tax-exempt municipal bond interest. Adam and Tanya are married and have no children. Adam and Tanya's 2020 taxable income is $98,900 which is comprised solely of wages they earn from their jobs. Refer to the tax rate schedule for calculations. Do not round intermediate computations. Round your final answers to two decimal places. Assume that Adam and Tanya file jointly. Sheila's tax is $ 22,350 X. Adam and Tanya's tax is $ 14,260 X. The difference in the tax rate schedules for single and married taxpayers reflects the greater ability to pay tax by single taxpayers at the same income level as married taxpayers. The tax rate structures do reflect the ability-to-pay concept. Feedback Check My Work In some instances a provision exists that excludes certain types of income from taxation. This could result in a higher income taxpayer being taxed at less than his/her ability to pay.