Exhibit 12-1 Income for Two Persons

Exhibit 12-1 Income for two persons

In Exhibit 12-1, if the income tax system is proportional, then:

A) Elaine and Daniel will face the same tax rate and will have tax bills the same size.
B) Elaine and Daniel will face the same tax rate but Elaine's tax bill will be larger.
C) Elaine will face a higher tax rate and will have a larger tax bill than Daniel.
D) Elaine will face a lower tax rate and will have a smaller tax bill than Daniel.