Assume that the government proposes a negative income tax that calculates taxes owed by the formula, Taxes Owed = (a × Income) -
a.What is the value for "a"?
b.What is the value for "b"?
b.A family with an income of $40,000 pays $5,000 in taxes, and a family with an income of $12,000 receives an income subsidy of $2,000.
c.What is the tax liability of a family with an income of $50,000?
d.At what level of income will a family neither pay taxes, nor receive an income subsidy?

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The Answer of Assume that the government proposes a negative income tax that calculates taxes owed by the formula, Taxes Owed = (a × Income) -
a.What is the value for "a"?
b.What is the value for "b"?
b.A family with an income of $40,000 pays $5,000 in taxes, and a family with an income of $12,000 receives an income subsidy of $2,000.
c.What is the tax liability of a family with an income of $50,000?
d.At what level of income will a family neither pay taxes, nor receive an income subsidy?

Assume That the Government Proposes a Negative Income Tax That