Kim and Kayne have been dating for years and are now thinking about getting married. As a financially sophisticated couple, they want to think through the tax implications of their potential union. a. Suppose Kim and Kanye both earn $70,000 (so their combined income is $140,000). Using the tax bracket information, calculate the combined tax bill that they would pay if they remain single, and compare that to the taxes they would pay if they were married and filed a joint return. b. Now suppose that Kim and Kanye both earn $400,000 (so their combined income is $800,000). Calculate the combined tax bill that they would pay if they remain single, and compare that to the taxes that they would pay if they were married and filed a joint return. c. What differences do you find in parts (a) and (b)? What is the cause of these differences? (Click the icon here in order to copy the contents of the data table below into a spreadsheet.) TABLE 1.2: Federal Income Tax Rates and Brackets for Individual Returns (2018) Taxable Income $0 to $9,875 Tax Rates 10.0% 12.0% 22.0% 24.0% 32.0% 35.0% 37.0% $9,876 to $40,125 $40,126 to $85,525 $85,526 to $163,300 $163,301 to $207,350 $207,351 to $518,400 Over $518,401 10% of taxable income Taxes $987.50, plus 12% of the amount over $9,876 $4,617.50, plus 22% of the amount over $40,12 $14,605.50, plus 24% of the amount over $85,5 $33,271.50, plus 32% of the amount over $163 $47,367.50, plus 35% of the amount over $207 $156,235.50, plus 37% of the amount over $518,401 TABLE 1.2: Tax Rates and Income Brackets for Joint Returns (2018) Taxable Income Joint Returns $0 to $19,750 $19,751 to $80,250 Tax Rates 10% 12% 22% $80,251 to $171,050 24% $171,051 to $326,600 32% $326,601 to $414,700 35% $414,701 to $622,050 37% Over $622,050