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 $112,000, and the Jones had total taxable income of $56,000.

a. Using the federal tax rates given in Table 1.2, , for married couples filing joint returns, calculate the taxes for both the Smiths and the Jones.

The taxes for the Smiths is $___?

The taxes for the Jones is $___?

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?

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.)

c. What does this demonstrate about the federal income tax structure?

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

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

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

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

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