Scenario 20-4 Suppose the Government Implemented a Negative Income Tax and Used

Multiple Choice

Scenario 20-4
Suppose the government implemented a negative income tax and used the following formula to compute a family's tax liability:
Taxes owed = (1/5 of income) - $15,000
-Refer to Scenario 20-4. Below what level of income would families start to receive a subsidy from this negative income tax?

A) $5,000
B) $15,000
C) $50,000
D) $75,000