4. Redistributive philosophies and incentives Consider a society consisting of two people. Kenji earns an income of $120,000 per year and Lucia earns an income of $35,000 per year, The government is considering a redistribution plan that would impose a 15% tax on Kenji's income and give the revenue to Lucia. Without any incentive distortion, Kenji would retain $102,000 and Lucia would end up with $53,000. However, let us assume that since Kenji will not receive all the income he earns, he decides to work less and earn an income of only $100,000, of which 15% x $100,000 - $15,000 will be owed in taxes. With the redistribution plan, Kenji will take home an income of S The $15,000 that Kenji pays in taxes will be transferred by the government to Lucia. Let us assume that since Lucia now receives payment from the government, she will not work as many hours and will earn an income from work of only $30,000 instead of her initial $35,000. With the redistribution plan, Lucia's total income (including the government payment received) is now Without a redistribution plan, total income in this society is . After the redistribution plan is implemented, total income in this society is . Therefore, the redistribution plan total income in this society. According to the libertarian political philosophy, the government implement this redistribution plan. Why? The plan benefits Lucia, who is the least well off member of society. O Total societal utility will increase if the plan is enacted. The government is not entitled to take money away from one person and give it to another