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Question: Kim and Kanye 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 in Table (or the Excel file available on My Finance Lab with the same 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 $100,000 (so their combined income is $200,000). 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?
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