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6. Suppose the Earned Income Tax Credit (EITC) is designed as follows: (I) The maximum tax credit is $3,000, which is given on Earned Income
6. Suppose the Earned Income Tax Credit (EITC) is designed as follows: (I) The maximum tax credit is $3,000, which is given on Earned Income between $10,000 and $20,000. (2) The EITC becomes zero at $35,000 of Earned Income A. Show the structure of the Earned Income Tax Credit on a diagram. [3 points] B. Compute the EITC if Earned Income is (i) $5,000; {ii} $25,000. [7" points]
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