(Answered) 1 could an increase in the tax rate on labor income reduce

Engineering

1) Could an increase in the tax rate on labor income reduce real tax revenue? How does the answer depend on the responsiveness of labor supply to the after-tax real wage rate?

2) Suppose that the government announces a reduction in next year's tax rate on labor income. What intertemporal-substitution effect will this announcement have on the current quantity of labor supplied?

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