The two examples are not equal.
Form 1040 Line 11 is adjusted gross income.
The examples are not equal if there is adjusted gross income of $128,505 without foreign earned income and another with foreign earned income exclusion of $100,000 as stated and the same adjusted gross income of $128,505.
The second example has $100,000 more gross income than the first example because it has been subtracted out before adjusted gross income is calculated.
If you claimed the foreign earned income exclusion, housing exclusion, or housing deduction on Form 2555, you must figure your tax using the Foreign Earned Income Tax Worksheet.
The nonexcluded income in the second example is going to be taxed at the rate it would have been taxed if the excluded income had been included in adjusted gross income.
The excluded income just isn't subject to tax. Foreign Earned Income Tax Worksheet (see page 33)
