Household 1 earns $34,500 in employment income and $500 in i…
Household 1 earns $34,500 in employment income and $500 in investment income. Household 2 earns $68,000 in employment income and $2,000 in investment income. Household 3 earns $132,000 in employment income and $7,000 in investment income. Health insurance may be offered to each household under 3 different systems: A premium-based system would cost each household $8,000. A wage tax–based system would cost each household 10.2 percent of wages. An income tax–based system would cost each household 9.8 percent of total income. What percent of Household 3’s total income would be spent on health insurance under the premium based system?