The tax system in taxilvania includes a negative income tax. on the first $10,000 earned, individuals pay an income tax of −40% (that is, they receive a payment of 40% of their income). for any income above the $10,000 threshold, the tax rate on that additional income is 10%.b. can you find a situation in this tax system where earning more pretax income actually results in less after-tax income? explain.
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The tax system in taxilvania includes a negative income tax. on the first $10,000 earned, individual...
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