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.

TABLE 4.9 2017 Marginal Tax Rates, Standard Deductions, and Exemptions* Married Filing Married Filing Head of Tax Rate" Single Jointly Separately Household 10% up to $9325 up to $18,650 up to $9325 up to $13,350 15% up to $37,950 up to $75,900 up to $37,950 up to $50,800 25% up to $91,900 up to $153,100 up to $76,550 up to $131,200 28% up to $191,650 up to $233,350 up to $116,675 up to $212,500 33% up to $416,700 up to $416,700 up to $208,350 up to $416,700 35% up to $418,400 up to $470,700 up to $235,350 up to $444,550 39.6% above $418,400 above $470,700 above $235,350 above $444,550 Standard $6350 $12,700 $6350 $9350 deduction Exemption $4050 $4050 $4050 $4050 (per person) *This table ignores (i) exemption and deduction phase-outs that apply to high-income taxpayers; (ii) the alterna- tive minimum tax (AMT) that affects many middle- and high-income taxpayers; (iii) potential changes in tax law made after this text was printed that may have changed the values given in this table for 2017. *Each higher marginal rate begins where the prior one leaves off. For example, for a single person, the 15% marginal rate affects income starting at $9325, which is where the 10% rate leaves off, and continuing up to $37,950