Problem 3: Marginal income tax rates for a single ler in the United States are as follows: Schedule XIf your filing status is Single If your taxable income is: But not 0V9! over 50 $9,950 ......... 10% 9,950 40,525 $995.00 + 12% 40.525 86,375 4,664.00 + 22% 86,375 164,925 14,751.00 + 24% 164,925 209,425 33,503.00 4- 32% 209,425 47,343.00 + 35% 523,600 157,804.25 + 37% Assume a single ler has a pre-tax gross income of $75,000 and uses the standard deduction of $12,950. 33. In order to encourage retirement saving, the US federal government makes contributions to a 401(k) retirement plan tax deductible. This means you can subtract 401 (k) contributions (up to the cap of $20,500) from gross income before applying marginal tax rates to determine income tax owed. Suppose our single ler contributes $10,000 to a 401(k). Calculate their income tax owed and average tax rate. 3b. Suppose that instead of contributing to a 401(k), our single filer puts their $10,000 in a savings account (no tax benefit). Calculate their income tax owed and average tax rate. 3c. Do tax deductions for retirement saving make the tax system more or less progressive? Explain why