Answer Happy

Question No 3 What is Negative Income Tax? Explain in detail the NIT graph below (2.5 Marks) D 80 00 would have to be quite high to finance the transfers and other pomment ser visa kied to encourage work effort, it would be even worse. I y 82, and to $20,000, the beak eten income leed would be l $100,000. Therefore, all families of four with incese of less than $100,000 per year would raise mandred Only families of 4 with incomes above $100,000 p FIGURE 7.10 A NIT Pla lan A break even level of income, is would receive and