To determine the type of taxation system based on the given data, we need to calculate the effective tax rate for each citizen and compare them. Follow these steps:
1. Determine the effective tax rate for Citizen A:
- Income of Citizen A: \[tex]$35,000
- Taxes paid by Citizen A: \$[/tex]3,850
- Effective tax rate for Citizen A = [tex]\(\frac{\text{Taxes paid}}{\text{Income}}\)[/tex]
- Effective tax rate for Citizen A = [tex]\(\frac{3850}{35000} = 0.11\)[/tex]
2. Determine the effective tax rate for Citizen B:
- Income of Citizen B: \[tex]$72,000
- Taxes paid by Citizen B: \$[/tex]7,920
- Effective tax rate for Citizen B = [tex]\(\frac{\text{Taxes paid}}{\text{Income}}\)[/tex]
- Effective tax rate for Citizen B = [tex]\(\frac{7920}{72000} = 0.11\)[/tex]
3. Compare the effective tax rates:
- Effective tax rate for Citizen A: 0.11
- Effective tax rate for Citizen B: 0.11
Since both effective tax rates are equal (0.11 for Citizen A and 0.11 for Citizen B), it indicates that both citizens are taxed at the same rate regardless of their income. This uniform tax rate for different income levels signifies a proportional taxation system.
Thus, according to the chart, the citizens are being taxed proportionally.
