An income guarantee of $10,000 per year for all families is established with a phase-out rate of benefits of 50 cents per dollar of earnings.Then it follows that:

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Families with earnings of less than $10,000 per year will receive the full transfer of $10,000. As earnings increase, the benefit will phase-out at a rate of 50 cents per dollar of earnings. Therefore, at an earnings level of $20,000 per year, the benefit will phase out completely, resulting in all families with earnings of less than $20,000 per year receiving transfers. Families with earnings above $20,000 per year will not receive any transfers.

An Income Guarantee of $10,000 Per Year for All Families