During 2015, the Smiths and the Jones both filed joint tax returns. For the tax year ended December 31, 2015, the Smiths' taxable income was $134,000 and the Jones had total taxable income of $67 comma 000.

a. Using the federal tax rates given in table. For married couples filing joint returns, calculate the taxes for both the Smiths and the Jones.

b. Calculate and compare the ratio of the Smiths' to the Jones' taxable income and the ratio of the Smiths' to the Jones' taxes. What does this demonstrate about the federal income tax structure?

	Taxable Income
Tax Rates	Joint Returns
10%	$0 to $18,150
15%	$18,151 to $73,800
25%	$73,801 to $148,850
28%	$148,851 to $226,850
33%	$226,851to $405,100
35%	$405,101 to $457,600
39.6%	Over $457,600

a. Using the federal tax rates given in Table 1.2 for married couples filing joint returns, the taxes for the Smiths is ____. (Round to the nearest dollar.)

The taxes for the Jones is ____. (Round to the nearest dollar.)

b. The ratio of the Smiths' to the Jones' taxable income is _____. (Round to two decimal places.)

The ratio of the Smiths' to the Jones' taxes is _____. (Round to two decimal places.)

What does this demonstrate about the federal income tax structure?(Choose the best answer below.)

A. Those who earn higher incomes pay a higher proportion of their income in taxes.

B. Those who earn higher incomes pay a lower proportion of their income in taxes.

C.Those who earn lower incomes pay a higher proportion of their income in taxes.

D.Everyone pays the same proportion of their income in taxes.