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The government implements a negative income tax plan with a guaranteed minimum income of $5,000 and a phase-out rate for payments of 50%. Complete the
The government implements a negative income tax plan with a guaranteed minimum income of $5,000 and a phase-out rate for payments of 50%.
Complete the following table by calculating the negative tax and total after-tax income for each family income given. (Note: Suppose that any income above $11,000 would pay a positive tax.)
Family Income | Negative Tax | Total After-Tax Income |
---|---|---|
(Dollars) | (Dollars) | (Dollars) |
0 | ||
3,000 | ||
5,000 | ||
7,000 | ||
9,000 | ||
11,000 |
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