Let's analyze the given information step-by-step to determine how the citizens are being taxed.
We have two citizens with different incomes and the corresponding taxes they pay.
1. Citizen A
- Income: $35,000
- Tax rate: 11%
- Taxes paid: $3,850
2. Citizen B
- Income: $72,000
- Tax rate: 11%
- Taxes paid: $7,920
First, we observe that both Citizen A and Citizen B are taxed at the same rate of 11% regardless of their income.
To understand the taxation type, we need to recall the definitions of the three types of taxation:
- Proportional Taxation: This means that the tax rate is constant regardless of the income level. Everyone pays the same percentage of their income as tax.
- Progressive Taxation: This means that higher-income individuals pay a higher percentage of their income as tax than lower-income individuals.
- Regressive Taxation: This means that higher-income individuals pay a lower percentage of their income as tax than lower-income individuals.
Given that both citizens are taxed at the same tax rate of 11%, thus paying the same percentage of their respective incomes, they are being taxed proportionally. There is no increase or decrease in the tax rate concerning their income levels.
Therefore, according to the chart, the citizens are being taxed proportionally.
