The country of Econoville has created a negative income tax for its residents. Tax liability in the country is determined by the following equation: Taxes owed = (20% of income) ? $7,500 If my income is $10,000, what is my total tax owed (a positive number) or tax credit (a negative number)?

Question

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Taxes owed = (20% of income) ? $7,500Taxes owed = (0.20 * $10,000) ? $7,500Taxes owed = $2,000 ? $7,500Taxes owed = ?$5,500

The Country of Econoville Has Created a Negative Income Tax