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Maria and Tony Are Married

question 23

Essay

Maria and Tony are married. They are preparing to file their 2020 tax return. If they were to file as single taxpayers, Maria and Tony would report $10,000 and $70,000 of taxable income, respectively. On their joint tax return, their taxable income is $80,000. How much of a marriage penalty or benefit will Maria and Tony experience in 2020? (Use tax rate schedules.)


Definitions:

Price Discrimination

A pricing strategy where a company charges different prices for the same product or service depending on the customer, market, or region.

Airline Company

A business that provides air transport services for traveling passengers and freight.

Telephone Company

A business that provides telecommunications services such as voice calls and data transmission to customers.

Perfectly Price-Discriminated

When a seller charges each buyer their maximum willingness to pay, capturing all consumer surplus as producer surplus.

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