Exhibit 12-7 Negative income tax
Under the negative income tax scheme in Exhibit 12-7, families earning between $10,000 and $40,000 would:
A. receive the maximum negative income tax payment of $20,000.
B. receive payments under the negative income tax.
C. pay no income taxes, but receive no payments.
D. pay taxes of $5,000.
Answer: B
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