Assume that the government proposes a negative income tax that calculates taxes owed by the formula: Taxes Owed = (a x Income) -
a. What is the value for "a"?
b. A family with an income of R400 000 pays R50 000 in taxes, and a family with an income of R120 000 receives an income subsidy of R20 000.
b. What is the value for "b"?
c. What is the tax liability of a family with an income of R500 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 x Income) -
a. What is the value for "a"?
b. A family with an income of R400 000 pays R50 000 in taxes, and a family with an income of R120 000 receives an income subsidy of R20 000.
b. What is the value for "b"?
c. What is the tax liability of a family with an income of R500 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