Find a proportional income tax is levied on wage income

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Question: An individual is known to increase the hours per week worked when non-wage income is decreased. What will happen to the hours worked if

(a) a proportional income tax is levied on wage income?

(b) a proportional income tax is levied on total income?

(c) a proportional tax on wage income is used solely to finance an increase in non-wage income?

Would any of your answers differ if the individual were known to decrease working hours when non-wage income decreased?

Reference no: EM131505184

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