To determine how the two citizens are being taxed, we'll analyze the tax rate and the taxes paid relative to their incomes.
First, let's check Citizen A:
- Income: \[tex]$35,000
- Tax rate: 11%
- Taxes paid: \$[/tex]3,850
We can verify the tax calculation by multiplying the income by the tax rate:
[tex]\[ \$35,000 \times 0.11 = \$3,850 \][/tex]
This matches the taxes paid by Citizen A.
Next, we'll check Citizen B:
- Income: \[tex]$72,000
- Tax rate: 11%
- Taxes paid: \$[/tex]7,920
Again, let's verify the tax calculation by multiplying the income by the tax rate:
[tex]\[ \$72,000 \times 0.11 = \$7,920 \][/tex]
This matches the taxes paid by Citizen B.
Now, since both Citizen A and Citizen B are paying taxes at the same rate (11%) and the taxes paid are proportional to their incomes, we can determine that the citizens are being taxed proportionally.
Therefore, according to the chart, the citizens are being taxed
proportionally.
