Mr. X and Mrs. Y pay $500.00 and $1,400.00 as taxes on their earning of S5,000.00 and $7,000.00 respectively. The system of taxation employed is

Answer Details

Based on the information you have provided, it appears that the system of taxation employed is a progressive tax system. In a progressive tax system, the tax rate increases as the amount of income increases. This means that those who earn more pay a higher percentage of their income in taxes compared to those who earn less. In this case, Mrs. Y pays a higher amount of taxes compared to Mr. X even though they both earn different amounts of money. This is because Mrs. Y earns more and is therefore taxed at a higher rate. In summary, the progressive tax system is a tax system that takes a larger percentage of income from those who earn more, in order to provide services and benefits to the public.