Suppose the government used the following formula to compute a family's tax liability: Taxes owed = 28% of income - $8,000. How much would a family have to earn to owe $0 in taxes?

Question

Quizplus · Accepted Answer

To owe $0 in taxes, the formula becomes: 28% of income - $8,000 = $0. Simplifying this equation, we get 28% of income = $8,000. Dividing both sides by 28%, we get income = $28,571. Therefore, the family would have to earn $28,571 to owe $0 in taxes.

Suppose the Government Used the Following Formula to Compute a Family's