(Table: Taxes, Spending, and Income) Suppose Governor Meridias decides to initiate a state-level income tax.The first $50,000 of household income is tax-free, while any income above $50,000 is taxed at 10%.The average tax rate for a household earning $75,000 is:

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The average tax rate is the total tax paid divided by the total income. In this case, the total tax paid is 10% of the income above $50,000, which is $2,500. The total income is $75,000. Therefore, the average tax rate is $2,500 / $75,000 = 3.3%.

(Table: Taxes, Spending, and Income) Suppose Governor Meridias Decides to Initiate