Under a negative income tax,if the guaranteed income level is $10,000 with a tax rate of 50%,the breakeven income level will be

Name: Under a negative income tax,if the guaranteed income level is $10,000 with a tax rate of 50%,the breakeven income level will be
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The breakeven income level is where the tax paid equals the guaranteed income. With a 50% tax rate, the breakeven income is $20,000 because 50% of $20,000 is $10,000, which offsets the guaranteed income.

Under a Negative Income Tax,if the Guaranteed Income Level Is