proposal for a negative income tax A proposal for a negative income tax is designed to provide an income guarantee for each person, irrespective of his/her age or status, of $3,000 per year Thus, a...

proposal for a negative income tax

A proposal for a negative income tax is designed to provide

an income guarantee for each person, irrespective of his/her age or status, of

$3,000 per year Thus, a family of four would have an income guarantee of

$12,000 per year The transfers, under the program, will be phased out at a

rate of 25% as earned income increases Calculate the break-even level of

income for a family of four If all families above the break-even level of

income pay a flat rate 25% tax on their earnings, plot disposable income as a

function of earned income Discuss the costs of this plan Create a graph on a

spreadsheet program (such as MS Excel), copy and paste it into a MS Word

document, write your answer in the MS Word document, and upload it to

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