Therefore the redistribution plan (decrease or increase) According to the libert

Question

Therefore the redistribution plan (decrease or increase) According to the libertarian political philosophy the government ( should or should not) implement this redistribution plan why? oo AT&T; 12:22 PM 70%. courses.aplia.com Graded Assignment | Read Chapter 20 | Back to Assignment Attempt verage 1 Consider a society comprised of two people. Yakov earns an income of $85,000 per yea and Ana earns an income of $25,000 per year. The government is considering a redistribution plan that would impose a 25% tax on Yakov's income and give the revenu to Ana. Without any incentive distortion, Yakov would retain $63,750 and Ana would end up wit $46,250. However, let us assume that since Yakov will not receive all the income he ear he decides to work less and earn an income of only $75,000, of which 25%x $75,000-$18.750 will be owed in taxes. With the redistribution plan, Yakov will take home an income of The $18,750 that Yakov pays in taxes will be transferred by the government to Ana. Let us assume that since Ana now receives payment from the government, she will not wor as many hours and will earn an income from work of only $24,000 instead of her initial $25,000. With the redistribution plan, Ana's total income (including the government payment received) is now Without a redistribution plan, total income in this society is redistribution plan is implemented, total income in this society is the redistribution plan After the Therefore total income in this society. According to the libertarian political philosophy, the governmentimplement th redistribution plan. Why? O Total sociletal utlity willincrease if the plan is enacted The government is not entitled to take money away from one person and give it to another The plan benefits Ana, who is the least well off member of society.

Explanation / Answer

56250 will be take home income

42750 is ana's total income

110,000 is total income

99,000 is after implementation

Decreases

Should not

The government is not entitled to take money from one and give it to other

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