Scenario 20-7 Suppose the Government Implemented a Negative Income Tax and Used

Multiple Choice

Scenario 20-7
Suppose the government implemented a negative income tax and used the following formula to compute a family's tax liability:
Taxes owed = (1/6 of income) - $24,000
-Refer to Scenario 20-7. Below what level of income would families start to receive a subsidy from this negative income tax?

A) $24,000
B) $50,000
C) $144,000
D) $150,000