Answer :
To determine how the citizens are being taxed based on the chart, let's analyze the given data step-by-step.
1. Identify the Incomes and Taxes Paid:
- Citizen A has an income of \[tex]$35,000 and pays \$[/tex]3,850 in taxes.
- Citizen B has an income of \[tex]$72,000 and pays \$[/tex]7,920 in taxes.
2. Identify the Tax Rate:
- Both Citizen A and Citizen B are mentioned to have a tax rate of 11%.
3. Calculate the Effective Tax Rate:
- For Citizen A: [tex]\( \text{Effective Tax Rate} = \frac{\text{Taxes Paid}}{\text{Income}} = \frac{3850}{35000} = 0.11 \)[/tex] or 11%
- For Citizen B: [tex]\( \text{Effective Tax Rate} = \frac{\text{Taxes Paid}}{\text{Income}} = \frac{7920}{72000} = 0.11 \)[/tex] or 11%
4. Compare the Tax Rates:
- Both citizens have an effective tax rate of 11%.
5. Determine the Type of Taxation:
- Proportional Taxation: This type of taxation occurs when the tax rate remains constant regardless of the level of income. Since both citizens are taxed at the same rate of 11%, the taxation system is proportional.
- Progressive Taxation: This occurs when the tax rate increases as the income increases.
- Regressive Taxation: This occurs when the tax rate decreases as the income increases.
Since the tax rate (11%) is constant for both Citizen A and Citizen B, regardless of their different income levels, the taxation system described in the chart is proportional.
Thus, the citizens are being taxed proportionally.
1. Identify the Incomes and Taxes Paid:
- Citizen A has an income of \[tex]$35,000 and pays \$[/tex]3,850 in taxes.
- Citizen B has an income of \[tex]$72,000 and pays \$[/tex]7,920 in taxes.
2. Identify the Tax Rate:
- Both Citizen A and Citizen B are mentioned to have a tax rate of 11%.
3. Calculate the Effective Tax Rate:
- For Citizen A: [tex]\( \text{Effective Tax Rate} = \frac{\text{Taxes Paid}}{\text{Income}} = \frac{3850}{35000} = 0.11 \)[/tex] or 11%
- For Citizen B: [tex]\( \text{Effective Tax Rate} = \frac{\text{Taxes Paid}}{\text{Income}} = \frac{7920}{72000} = 0.11 \)[/tex] or 11%
4. Compare the Tax Rates:
- Both citizens have an effective tax rate of 11%.
5. Determine the Type of Taxation:
- Proportional Taxation: This type of taxation occurs when the tax rate remains constant regardless of the level of income. Since both citizens are taxed at the same rate of 11%, the taxation system is proportional.
- Progressive Taxation: This occurs when the tax rate increases as the income increases.
- Regressive Taxation: This occurs when the tax rate decreases as the income increases.
Since the tax rate (11%) is constant for both Citizen A and Citizen B, regardless of their different income levels, the taxation system described in the chart is proportional.
Thus, the citizens are being taxed proportionally.