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

question 77

Multiple Choice

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. This negative income tax would guarantee what minimum level of income to every family?

• A)$5,000
• B)$10,000
• C)$15,000
• D)$50,000

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