CASE I. I: RETAIL SALES TAX EVALUATION The minimum combined retail sales tax rate in the City of Seattle is 10.1 percent. This is the total of state (6.5 percent) and local city/county sales tax rates (3.6 percent). A survey of expenditure patterns among households is summarized in the table below. The table presents a summary of spending for households with three family members. Keep in mind total consumption per household exceeds average income for the household, particularly for households reporting income less than $20,000. That's because these households participate in government-sponsored programs that provide additional income (e.g., Supplementary Nutrition Assistance Program). Percent of Total Consumption Spent on Exempt Purchases of: Total Income Average Prescription Personal Medical Non-Exempt Class Income Consumption Food Per Household Drugs Services Services Purchases Less than $10,000 54,500 56,750 25.0% 5.0% 5.0% 15.0% 50.0% $10,000 up to $19,999 $14.750 $17.000 20.0% 5.0% 2.0% 12.0% 61.0% $20,000 up to $39,999 $29,000 $26,500 17.5% 4.0% 2.5% 10.0% 66.0% $40.000 up to 59,999 549.000 $38,500 15.0% 2.0% 2.5% 9.0% 71.5% $60.000 up to $79,999 569,000 548,000 11.0% 1.2% 2.5% 7.0% 78.3% $80,000 up to $109.999 $100,000 565,000 9.0% 1.2% 2.5% 6.0% 81.3% $1 10,000 up to $149,999 $125,000 $77,500 7.0% 1.0% 2.5% 5.0% 84.5% $150,000 up to $200,000 $175.000 $100.000 5.0% 0.5% 2.0% 2.5% 90.5% More than $200,000 $350.000 $175.000 4.0% 0.2% 1.0% 2.0% 92.8% Assuming food, prescription drugs, personal services (e.g., beauty, barbering, manicure, pedicure, health salon, and gymnasium services) and medical services are all exempt from the retail sales tax, Estimate the average ? aid and effective tax rate for households making's