Answer :
To determine the type of taxation system represented by the given table, let's analyze the data step-by-step.
The table provides the following information:
- Citizen A has an annual income of [tex]$30,000 and pays 10% of income in taxes. - Citizen B has an annual income of $[/tex]60,000 and pays 15% of income in taxes.
- Citizen C has an annual income of [tex]$120,000 and pays 25% of income in taxes. We'll calculate the actual tax amount paid by each citizen: - Citizen A: \( \$[/tex]30,000 \times 10\% = \[tex]$3,000 \) - Citizen B: \( \$[/tex]60,000 \times 15\% = \[tex]$9,000 \) - Citizen C: \( \$[/tex]120,000 \times 25\% = \[tex]$30,000 \) Next, we'll evaluate the percentage of income paid in taxes relative to each citizen's income: - Citizen A: 10% of \$[/tex]30,000 = \[tex]$3,000 - Citizen B: 15% of \$[/tex]60,000 = \[tex]$9,000 - Citizen C: 25% of \$[/tex]120,000 = \[tex]$30,000 From these calculations, it is evident that the tax rate increases as the annual income increases: - For income of \$[/tex]30,000, the tax rate is 10%.
- For income of \[tex]$60,000, the tax rate is 15%. - For income of \$[/tex]120,000, the tax rate is 25%.
This type of taxation system, where the tax rate increases with higher income levels, is known as a Progressive tax system.
Therefore, the table represents a Progressive taxation system.
The table provides the following information:
- Citizen A has an annual income of [tex]$30,000 and pays 10% of income in taxes. - Citizen B has an annual income of $[/tex]60,000 and pays 15% of income in taxes.
- Citizen C has an annual income of [tex]$120,000 and pays 25% of income in taxes. We'll calculate the actual tax amount paid by each citizen: - Citizen A: \( \$[/tex]30,000 \times 10\% = \[tex]$3,000 \) - Citizen B: \( \$[/tex]60,000 \times 15\% = \[tex]$9,000 \) - Citizen C: \( \$[/tex]120,000 \times 25\% = \[tex]$30,000 \) Next, we'll evaluate the percentage of income paid in taxes relative to each citizen's income: - Citizen A: 10% of \$[/tex]30,000 = \[tex]$3,000 - Citizen B: 15% of \$[/tex]60,000 = \[tex]$9,000 - Citizen C: 25% of \$[/tex]120,000 = \[tex]$30,000 From these calculations, it is evident that the tax rate increases as the annual income increases: - For income of \$[/tex]30,000, the tax rate is 10%.
- For income of \[tex]$60,000, the tax rate is 15%. - For income of \$[/tex]120,000, the tax rate is 25%.
This type of taxation system, where the tax rate increases with higher income levels, is known as a Progressive tax system.
Therefore, the table represents a Progressive taxation system.
