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5. Suppose a Negative Income Tax is designed as follows: (I) The basic allowance is set at $6,000. (2) The breakeven income is $11000. (3)

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5. Suppose a Negative Income Tax is designed as follows: (I) The basic allowance is set at $6,000. (2) The breakeven income is $11000. (3) The slope of the AfterTax income line is constant. A. Showthe structure of the Negative Income Tax on a diagram. [8 points] E. Compute both the Tax l[Credit and the Total AerTax Income ifBeforeTax Income is: (i) $3,000; (ii) $14,000- [7" points]

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