To determine how the citizens are being taxed, we need to analyze the relationship between their incomes and the taxes they pay.
### Step 1: Understand the Data
- Citizen A
- Income: [tex]$35,000
- Tax Rate: 11%
- Taxes Paid: $[/tex]3,850
- Citizen B
- Income: [tex]$72,000
- Tax Rate: 11%
- Taxes Paid: $[/tex]7,920
### Step 2: Analyze Tax Rates
Both citizens have the same tax rate of 11%. This means that regardless of their income, they are taxed at the same percentage.
### Step 3: Calculate Taxes Paid
- For Citizen A:
- [tex]\( \text{Tax Paid} = \text{Income} \times \text{Tax Rate} \)[/tex]
- [tex]\( \$3,850 = \$35,000 \times 0.11 \)[/tex]
- Verifying the calculation: [tex]\( \$35,000 \times 0.11 = \$3,850 \)[/tex]
- For Citizen B:
- [tex]\( \text{Tax Paid} = \text{Income} \times \text{Tax Rate} \)[/tex]
- [tex]\( \$7,920 = \$72,000 \times 0.11 \)[/tex]
- Verifying the calculation: [tex]\( \$72,000 \times 0.11 = \$7,920 \)[/tex]
Both calculations confirm that the taxes paid correspond to an 11% tax rate.
### Step 4: Determine the Type of Tax System
Since both Citizen A and Citizen B pay taxes at the same rate of 11% regardless of their income, this indicates that the tax system they are under does not change the tax rate based on income level. This type of tax system is known as proportional taxation.
- Proportional Taxation: Everyone pays the same percentage of their income in taxes, regardless of the amount of income.
Given the information in the chart, the citizens are being taxed proportionally.
