Exhibit 12-7 Negative income tax A graph plots tax liability in thousands of dollars per year on the y-axis ranging from -20 to 20, and family of four income in thousands of dollars per year on the x-axis ranging from 0 to 70. A positively sloped straight-line labeled tax passes through the points (0,-20), (20, -10), (40, 0), and (60, 10). As shown in Exhibit 12-7, a family of four with no earned income receives ____ from the government. a. the break-even income of $40,000 b. a $20,000 tax deferment c. a $20,000 payment d. zero payment