2. Bequest Taxation: 40 points Consider a two period model: t = D. 1. The parent lives in I = 0 and has endowment W > t} and needs to decide how much to bequeath the kid. Denote bequest as b 3 CI. The kid lives in period t = 1. There are no labor decisions taken in any period. The parent loves the kid and puts an altruistic weight of "Jr on the kid. The parent has utility 111025) + qun (a?) , where .5 = 1 is the discount factor both the parent and the kid use. Suppose the interest rate is r = 0. President Selina Meyer is deciding whether to tax bequest with a bequest tax of T. Let 3 E [0, 1] denote weight Selina puts on the parent and 1 9 the kid, i.e., Selina's objective is to maximize 9 [111(c5') + Tln(c{