Suppose the government proposes a negative income tax that calculates taxes owed according to the formula TAXES OWED = (1/2 * INCOME) - 5 000.A family that earns an income of $30 000 will:

Question

Quizplus · Accepted Answer

For an income of $30,000, the taxes owed would be (1/2 * 30,000) - 5,000 = 15,000 - 5,000 = 10,000. Thus, the family will pay a tax of $10,000.

Suppose the Government Proposes a Negative Income Tax That Calculates