Which Formula Is Most Representative of a Negative Income Tax

question 11

Multiple Choice

Which formula is most representative of a negative income tax proposal

• A)Taxes owed = (1/4 of income) × 2
• B)Taxes owed = (1/3 of income) - $15,000
• C)Taxes owed = (1/2 of income) + $15,000
• D)Taxes owed = (1/3 of income) x 3/4

---

Definitions:

Millions

A numerical value representing one thousand thousands, or 1,000,000.

Cash Flow

The total amount of money being transferred into and out of a business, often used as an indicator of financial health.

Assets

Resources owned by a company that have economic value and can be converted into cash.

Millions

A numerical unit equal to 1,000,000 or 10^6, often used in accounting and financial reporting to denote large values.