Scenario 20-4
Suppose the government implemented a negative income tax and used the following formula to compute a family's tax liability:
Taxes owed = (1/5 of income) - $15,000
-Refer to Scenario 20-4. Below what level of income would families start to receive a subsidy from this negative income tax?
A)$5,000
B)$15,000
C)$50,000
D)$75,000

Question

Quizplus · Accepted Answer

The Answer of Scenario 20-4
Suppose the government implemented a negative income tax and used the following formula to compute a family's tax liability:
Taxes owed = (1/5 of income) - $15,000
-Refer to Scenario 20-4. Below what level of income would families start to receive a subsidy from this negative income tax?
A)$5,000
B)$15,000
C)$50,000
D)$75,000

Scenario 20-4 Suppose the Government Implemented a Negative Income Tax and Used