Assume That the Government Proposes a Negative Income Tax That

Assume that the government proposes a negative income tax that calculates the taxes owed as follows: Taxes Owed = (1/3 × Income) - 10,000.A family that earns an income of $60,000 will

A) pay $10,000 in taxes.
B) receive an income subsidy of $3,000.
C) receive an income subsidy of $10,000.
D) neither pay taxes nor receive an income subsidy.