3. Redistributive philosophies and incentives Consider a society comprised oftwo people. Alex earns an income of$85,000 per year and Becky earns an income of $25,000 per year. The government is considering a redistribution plan that would impose a 25% tax on Alex's income and give the revenue to Becky. Without any incentive distortion, Alex would retain $63,750 and Becky would end up with $46,250. However, let us assume that since Alex will not receive all the income he earns, he decides to work less and earn an income of only $75,000, of which 25% x $35000 : $18,511 will be owed in taxes. with the redistribution plan, Alex will take home an income of i. The $18,750 that Alex pays in taxes will be transferred by the government to Becky. Let us assume that since Becky now receives payment from the government, she will not work as many hours and will earn an income from work of only $24,000 instead of her initial $25,000. with the redistribution plan, Becky's total income (including the government payment received) is now I I. Without a redistribution plan, total income in this society isl .After the redistribution plan is implemented, total income in this society is I . Therefore, the redistribution plan V total income in this society. According to the libertarian political philosophy, the government v implement this redistribution plan. why? O The government is not entitled to take money away from one person and give it to another. C) Total societal utility will increase if the plan is enacted. C) The plan benets Becky, who is the least well off member of society