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Dividends and Capital Gains. Calculate the total tax (FICA and income taxes) owed by each individual in the following pairs. Compare their overall tax rates.
Dividends and Capital Gains. Calculate the total tax (FICA and income taxes) owed by each individual in the following pairs. Compare their overall tax rates. Assume that all individuals are single and take the standard deduction. Use the tax rates in Table 4.9 and the special rates for dividends and capital gains given in the text.
Pierre earned $120,000 in wages. Katarina earned $120,000, all from dividends and long-term capital gains.
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