The table below provides information about two individuals, Michael and Lindsay. Assume the following: Income tax brackets are the same as in Study Exercise 10. All after-tax income is either saved or spent. There is a sales tax of 7 percent on all goods and services.Annual pre-tax taxable incomeMichaelLindsayPercentage of after-tax income saved$35 000$400 000Income tax paid ($)10%40%After-tax incomeSales tax paid ($)Percentage of pre-tax incomepaid in income taxPercentage of pre-tax income paid in sales taxOverall average tax ratea. Calculate the income tax and sales taxes that each individual will pay annually and complete the remainder of the table. (Remember when calculating the sales tax paid that the individual’s total spending includes their sales tax paid.)b. Is the income tax progressive or regressive? How do you know?c. Is the sales tax progressive or regressive? How do you know?d. What effect does the sales tax have on the progressivity of this tax system overall? What government policy could address this effect?