1. Consider two people with incomes $Y, and $Y2, where Y1 > Yz > 0. A person's tax rate is to on the first Yz dollars and t, on the rest of his income, where to > tz > 0. They both deduct $D > 0 in child-care expenses when they file their income tax return. (i) Who benefits more from this deduction? Carefully explain your answer. It is easier but not crucial to explain your answer using math (algebra). (ii) Suppose the $D was not a deduction but instead a tax credit. Would that change your conclusion in (i)? Explain. (iii) On equity/fairness grounds, would you recommend tax credits or deductions? Explain (iv) What efficiency consideration would temper your answer in (iii)? Hint: Think about the effect on the government's budget and then carefully explain your