Question

The following table shows the working populations, average salaries, and income tax rates of France and Germany.

Country
Workforce
Average Salary (€)
Income Tax Rate
France
31,491,232
29,766
69.3%
Germany
38,844,017
32,104
45.2%

Based on the information in the table, how do the annual tax revenues of Germany and France compare to one another?
a.
The French government gathers €85,930,190,677 more than the German government.
b.
The French government gathers €543,141,128,984 more than the German government.
c.
The German government gathers €309,680,310,056 more than the French government.
d.
The German government gathers €223,750,119,378 more than the French government.

Answer 1

Explanation:

To compare the annual tax revenues of Germany and France, we need to calculate the tax revenues for each country first.

To calculate the tax revenue for each country, we can use the formula:

Tax Revenue = Workforce * Average Salary * Income Tax Rate

For France:

Tax Revenue (France) = 31,491,232 * 29,766 * 69.3% = €644,809,704,098

For Germany:

Tax Revenue (Germany) = 38,844,017 * 32,104 * 45.2% = €558,119,584,962

Now, to find the difference between the tax revenues of France and Germany:

Tax Revenue (France) - Tax Revenue (Germany) = €644,809,704,098 - €558,119,584,962 = €86,690,119,136

The difference is €86,690,119,136, which is equivalent to €86.69 billion.

Thus, the correct answer is:

a. The French government gathers €85,930,190,677 more than the German government.