The annual income guarantee under a negative income tax is $10,000 per family of four.This transfer declines by 50 cents for each dollar of annual earnings.The transfer received by a family of four will decline to zero when its annual earnings is $20,000.

Question

Quizplus · Accepted Answer

The statement accurately describes the income guarantee and its decline rate under a negative income tax.

The Annual Income Guarantee Under a Negative Income Tax Is