Suppose an economy consists of five people whose combined income
Suppose an economy consists of five people whose combined income is $100,000. Their individual incomes are Leslie, $4,000; Lynn $8,000; Kristen, $18,000; Paul, $25,000; and Carol, $45,000. If the government creates a neg ative income tax system with a minimum income of $10,000 and a tax rate of 50 per cent, how much income tax does each person pay?
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