Scenario 20-5 Suppose the Government Implemented a Negative Income Tax and Used

Multiple Choice

Scenario 20-5
Suppose the government implemented a negative income tax and used the following formula to compute a family's tax liability:
Taxes owed = (1/4 of income) - $10,000
-Refer to Scenario 20-5. Below what level of income would families start to receive a subsidy from this negative income tax?

A) $10,000
B) $25,000
C) $40,000
D) $50,000