3. Suppose f(y) = Ay+By2 describes the income tax paid by a person earning y (dollars) of taxable income in a given year (A and B are positive parameters). The government decides to reduce taxes and there are two proposals for doing so described below: (1) Allow every individual to deduct d dollars from their taxable income before the tax is calculated. (2) Calculate income tax on the full amount of taxable income, and then allow each person a "tax credit that deducts c dollars from their total tax due. a) Write a function for each of the two proposals. (Hint: Start with f(y) and incorporate deductions appropriately.) b) Caculate y* where the two proposals yield the same tax revenue. (Hint: Set your two new function equal to eachother and solve for y.) c) Illustrate graphically the two proposals and mark the income y* Tax (T) T = f(y) Income (y) 3. Suppose f(y) = Ay+By2 describes the income tax paid by a person earning y (dollars) of taxable income in a given year (A and B are positive parameters). The government decides to reduce taxes and there are two proposals for doing so described below: (1) Allow every individual to deduct d dollars from their taxable income before the tax is calculated. (2) Calculate income tax on the full amount of taxable income, and then allow each person a "tax credit that deducts c dollars from their total tax due. a) Write a function for each of the two proposals. (Hint: Start with f(y) and incorporate deductions appropriately.) b) Caculate y* where the two proposals yield the same tax revenue. (Hint: Set your two new function equal to eachother and solve for y.) c) Illustrate graphically the two proposals and mark the income y* Tax (T) T = f(y) Income (y)