Complete the following table by calculating the negative tax and total after-tax income for each family income given above $10,800 would pay a positive tax.) Family Income (Dollars) 0 2,800 4,800 6,800 Negative Tax (Dollars) Total After-Tax Income (Dollars)
Complete the following table by calculating the negative tax and total after-tax income for each family income given above $10,800 would pay a positive tax.) Family Income (Dollars) 0 2,800 4,800 6,800 Negative Tax (Dollars) Total After-Tax Income (Dollars)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The government implements a negative Income tax plan with a guaranteed minimum income of $5,000 and a phase-out rate for
payments of 50%.
Complete the following table by calculating the negative tax and total after-tax income for each family income given. (Note: Suppose that any income
above $10,800 would pay a positive tax.)
Family Income Negative Tax
(Dollars)
(Dollars)
0
2,800
4,800
6,800
8,800
10,800
Total After-Tax Income
(Dollars)
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