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Assume That the Government Proposes a Negative Income Tax That

Question 103

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Assume that the government proposes a negative income tax that calculates taxes owed by the formula TAXES OWED = (1/3 * INCOME) - $20 000.Compute the tax that would be owed given each of the following levels of income.
a.$180 000
b.$120 000
c.$60 000
d.$30 000
e.zero

Correct Answer:

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a.$40 000
...

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