The state of Indiana charges a retail sales tax of 7%. Consider the following information for three households:

Household	Income	Consumption	Tax Liability	Marginal Tax Rate	Average Tax Rate
1	150,000	45,000
2	80,000	40,000
3	30,000	21,000

Calculate tax liability for each household. (3 points)

What is the average tax rate for each household? (3 points)

What is the marginal tax rate for each household? (1 point)

Is the sales tax progressive, regressive or proportional? Explain?

i.Be sure to define each of these terms. Response should be limited to