Refer to Scenario 20-3. Below what level of income would families start to receive a subsidy from this negative income tax?

A) $16,000
B) $14,000
C) $18,000
D) $64,000

Negative Income Tax

A system of income support that supplements the income of individuals whose earnings are below a certain level, effectively a form of guaranteed minimum income.

Tax Liability

The total amount of tax that an individual or business is obligated to pay to the government.

Income Subsidy

A government payment to individuals or families that augments their income, intended to help them afford essential goods and services.