You can find the total taxes Mr. Jacob paid in 2007, but you cannot find what is the percentage of taxes that he paid out of his total income, because you don't know the total taxable income for 2007.

taxes paid in 2006 = 4.8% of 42500 = 2040
taxes paid in 2007 = 2040 + 232 = 2272

percent of Jacob's taxable income did he pay in state taxes =
[2272 / (total taxable income of 2007)] * 100

Since we don't know the total taxable income of 2007, both statements together are insufficient.

Hence E.

thanks dude -- i was assuming a diff variable