Scenario 20-6
Zooey is a single mother of two young children whose husband died in a tragic car accident. She earns $20,000 per year working as a cashier at a grocery store. The government uses a negative income tax system in which
Taxes owed = (1/4 of income) - $15,000.
-Refer to Scenario 20-6. How much does Zooey owe or receive from the government?

Question

Quizplus · Accepted Answer

Zooey's taxes owed are calculated as (1/4 of $20,000) - $15,000 = $5,000 - $15,000 = -$10,000. Since the result is negative, she receives $10,000 from the government.

Scenario 20-6 Zooey Is a Single Mother of Two Young Children Whose