To determine how the citizens are being taxed, let us analyze the information provided in the chart for Citizens A and B:
[tex]\[
\begin{tabular}{|l|l|l|l|}
\hline
& \multicolumn{1}{|c|}{Income} & \multicolumn{1}{|c|}{Tax rate} & \multicolumn{1}{|c|}{Taxes paid} \\
\hline
Citizen A & \$35,000 & 11\% & \$3,850 \\
\hline
Citizen B & \$72,000 & 11\% & \$7,920 \\
\hline
\end{tabular}
\][/tex]
1. Analyze the Tax Rate: Both Citizen A and Citizen B have a tax rate of 11%. This indicates that they are taxed at the same rate regardless of their different income levels.
2. Calculate Taxes Paid:
- For Citizen A: [tex]\( \$35,000 \times 11\% = \$35,000 \times 0.11 = \$3,850 \)[/tex]
- For Citizen B: [tex]\( \$72,000 \times 11\% = \$72,000 \times 0.11 = \$7,920 \)[/tex]
Both values match the taxes paid as shown in the chart.
3. Determine the Type of Tax System: Since both citizens are being taxed at a constant rate of 11%, the tax system does not vary with income. This means that the tax rate remains unchanged regardless of whether the income is higher or lower.
Given this consistency in the tax rate and the calculations, the tax system they are experiencing is proportional. A proportional tax system, also known as a flat tax system, applies the same tax rate to all taxpayers, regardless of income level.
Therefore, we can conclude that the citizens are being taxed proportionally.
