4. Redistributive philosophies and incentives Consider a society consisting of two people. Yakov earns an income of $115,000 per year, and Ana earns an income of $30,000 per year. The government is considering a redistribution plan that would impose a 25% tax on Yakov's income and give the revenue to Ana. Without any incentive distortion, Yakov would retain $86,250 and Ana would end up with $58,750. However, let us assume that since Yakov will not receive all the income he earns, he decides to work less and earn an income of only $105,000, of which 25%$105,000=$26,250 will be owed in taxes. With the redistribution plan, Yakov will take home an income of $ . The $26,250 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 work as many hours and will earn an income from work of only $29,000 instead of her initial $30,000. 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 $ . After the redistribution plan is implemented, total income in