Exhibit 12-9 Negative Income Tax
-As shown in Exhibit 12-9, a family of four does not pay income taxes at:

Question

Exhibit 12-9 Negative Income Tax  ​
-As shown in Exhibit 12-9, a family of four does not pay income taxes at:

Quizplus · Accepted Answer

As shown in the exhibit, the negative income tax line intersects the x-axis (income) at $20,000, indicating that any income below $20,000 would result in a negative income tax (or payment from the government). Therefore, a family of four would not pay income taxes at any income between zero and $20,000.

Exhibit 12-9 Negative Income Tax ​

Exhibit 12-9 Negative Income Tax