Duke Parking Case Scott D is the director of parking and transportation at Duke University. Duke University employees can purchase annual parking passes. Among his responsibilities, Scott proposes parking fee increases each year to the president of Duke University. Besides issues of fairness and affordability, Scott has at least two other factors to consider when he sets parking fees: First, the demand for parking permits should roughly equal the number of parking spaces. Second, the fees that he collects must cover the cost of maintaining and expanding the parking lots. Over the years, Scott has been remarkably successful at maintaining this balance. However, the balancing act has become more difficult in recent years as rapid growth on campus has reduced the number of parking places while increasing the demand for parking. Duke employees pay for their parking passes through payroll deductions. In the past, employees have paid for the passes with after-tax dollars. That is, parking fees were subtracted from an employee tax-home pay, after withholding for taxes. Beginning with fiscal year 2025-2026, new legislation enables employees to pay for their parking with pretax dollars. By paying for parking through pretax payroll deduction, employees will have the money taken out of their pay before taxes are calculated. This reduces their taxable income and thus reduces the amount of money withheld for both income and payroll taxes. Assume that federal income tax rates in 2025 range from 0% to 35%. Singles face a 10% rate on taxable income up to $7,000;15% from $7001 to $28,400;25% from $28,041 to $68,800;28% from $68,801 to $143,500;33% from $143,501 to $311,950; and 35% thereafter. Married couples face a 10% rate on taxable income up to $14,000;15% from $14,001 to $56,800;25% from $56,801 to $114,650;28% from $114,651 to $174,700;33% from $174,701 to $311,950; and 35% thereafter. Duke has three types of parking: (1) Remote (off campus), which includes a pass for bus transportation to campus; (2) Proximate, which is on campus but not necessarily next to the employee's office; and (3) Premium, which is on campus and guaranteed to be in the lot closest to the employee's office. The parking fees for 2023/2024 were Remote $86, Proximate $211, and Premium $423. The parking fees for 2024/2025 are Remote $90, Proximate $222, and Premium $444. Scott is turning to you, an expert (something woefully lacking at Duke) in all tax matters, to help him assess whether/how the new legislation should affect the 2025/2026 parking fees. What do you recommend as the 2025/2026 parking fees for Remote, Proximate, and Premium? Why