With a negative income tax featuring an $8,000 minimum level of income and a 20 percent tax rate, a household earning zero dollars would receive a subsidy of:

Name: With a negative income tax featuring an $8,000 minimum level of income and a 20 percent tax rate, a household earning zero dollars would receive a subsidy of:
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Question

Quizplus · Accepted Answer

With a negative income tax, if a household earns zero dollars, it would receive the full minimum level of income as a subsidy, which in this case is $8,000.

With a Negative Income Tax Featuring an $8,000 Minimum Level