Assume That the Government Proposes a Negative Income Tax That

Assume that the government proposes a negative income tax that calculates the taxes owed as follows: Taxes Owed = (1/3 Income) - 10,000. If a family doesn't earn any income, how does the negative income tax affect it?

A) It will receive an income subsidy of $1,000.
B) It will receive an income subsidy of $3,000.
C) It will receive an income subsidy of $10,000.
D) It will not be affected at all, since the negative income tax requires a family to earn income.