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6. Suppose that Freedonia decides to simplify its tax system(from that in question 5). Nowthere is a at tax rate of 25%, and per family deduction israised to 19,000 pesos (from 12,000pesos), and there is no child tax credit anymore. Martin's andDiego's family situation aswell as their gross income is the same as in question 5.(a) How much tax does Martin's family pay now? What is itsaverage tax rate?(b) How much tax does Diego's family pay now? What is itsaverage tax rate?(c) How much does the government total tax revenue from thesetwo families dier fromthat under the original tax system?(d) Is the new system more progressive, more regressive, orneither comparing to theoriginal tax system in question 5? Explain. Note that you needto consider otherpeople in addition to those like Martine's and Diego's family,e.g., the very poor.Show the detail of your computation.5. In Freedonia, the tax brackets works as follows.On the rst 20,000 pesos of taxable income, tax rate is 10%.On the portion of income from 20,000 to 50,000 pesos, the taxrate is 25%.On income above 50,000 pesos, the tax rate is 50%.In addition, each family has a 12,000 pesos deduction, and eachchild can claim 2,000 pesosof tax credit.(a) Martin has a wife and a kid, and the family gross income is50,000 pesos per year.(i) What is the family's marginal tax rate?(ii) How much tax does the family pay? What is its average taxrate?(b) Diego has a wife and three kids, and the family gross incomeis 100,000 pesos per year.(i) What is the family's marginal tax rate?(ii) How much tax does the family pay? What is its average taxrate?