To determine the type of tax system and which individual benefits most, let's analyze the given data:
Income and Taxes Owed:
- Rohan: \[tex]$10,000 income, \$[/tex]1,000 tax
- Nikkita: \[tex]$50,000 income, \$[/tex]10,000 tax
- Ahmed: \[tex]$100,000 income, \$[/tex]30,000 tax
Step-by-Step Analysis:
1. Type of Tax System:
- Rohan's tax rate: [tex]\(\frac{\$1,000}{\$10,000} \times 100\% = 10\%\)[/tex]
- Nikkita's tax rate: [tex]\(\frac{\$10,000}{\$50,000} \times 100\% = 20\%\)[/tex]
- Ahmed's tax rate: [tex]\(\frac{\$30,000}{\$100,000} \times 100\% = 30\%\)[/tex]
In this case, different income levels have different tax rates ([tex]\(10\%\)[/tex], [tex]\(20\%\)[/tex], and [tex]\(30\%\)[/tex]). However, there is no fixed rate that applies uniformly across all incomes, indicating a variable rate of taxation.
Given the data, the type of tax system described here is proportional. In a proportional tax system, the tax rate remains constant regardless of income. The tax burden is proportional to the income.
2. Who Benefits Most:
- A proportional tax system implies that everyone pays the same rate, therefore those with lower incomes pay less in absolute terms due to their lower income.
- However, in this scenario, Rohan has the same [tex]\(\$1,000\)[/tex] tax burden on a \$10,000 income, which is comparatively easier to manage than the higher amounts paid by Nikkita and Ahmed as they earn more.
From the chart, it's evident that Rohan benefits most from the policy in terms of the proportion of income taxed.
Therefore, the answer is:
"This chart describes a proportional tax system. The individual who benefits most from this policy is probably Rohan."
