A state applies a 7 percent tax to consumer purchases of many items. These are data for two typical families: Smith Family Annual Income $60,000 Family Size 2 Purchases of taxed items $30,000 Jones Family Annual Income $75,000 Family Size 3 Purchases of taxed items $40,000 1. What statutory rate does each family pay? 2. What effective rate does each family pay? 3. What is the vertical equity of this particular. tax