Scenario 20-2 Suppose the Government Implemented a Negative Income Tax and Used

question 258

Multiple Choice

Scenario 20-2
Suppose the government implemented a negative income tax and used the following formula to compute a family's tax liability:
Taxes owed = (1/4 of income) - $20,000
-Refer to Scenario 20-2.A family earning $90,000 before taxes would have how much after-tax income?

• A) $12,500
• B) $17,500
• C) $87,500
• D) $92,500

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