Assume a Negative Income Tax Is Set Up with a 20

question 118

Essay

Assume a negative income tax is set up with a 20 percent tax rate on market income and a guaranteed minimum income of $9,000.
a.What is the amount of taxes a household with $23,000 of market income pays or the amount of taxes this household receives?
b.What is the amount of taxes a household with $65,000 of market income pays or the amount of taxes this household receives?

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Definitions:

Northern Capitalists

Individuals from the northern United States, particularly during the 19th and early 20th centuries, who amassed wealth through industry and were instrumental in shaping the economy.

Slave-owning Planters

Individuals, especially in the pre-Civil War United States, who owned large agricultural estates and relied on enslaved African Americans for labor.

Colonel John Chivington

A Union Army officer remembered for leading an 1864 attack known as the Sand Creek Massacre, in which a peaceful village of Cheyenne and Arapaho people was destroyed.

Sioux Warriors

Members of the Sioux tribes, known for their skillful and fierce combat methods, who played a significant role in defending their lands and way of life in the 19th century against European-American expansion.