Consider a program with a better incentive effect would be to provide a subsidy to labor income. The program subsidizes labor income at a$25\%$ rate. If a person worked $2000$ hours per year at a wage of$$ $$4$ per$$ hour, to get labor income of$$ $$8000,$ the subsidy would increase the$$ person's wage by$25\%$ to$$ $$5$ per$$ hour, so he or she would earn$$ $$10,000$ per year.

What are the advantages and disadvantages of this$$ program?