Consider the following consumer's problem facing a proportional tax. Utility function over consumption (C) and leisure (L) U(C,L) = C1/2L 1/2 Total hours: H = 30 Labour hours: NS = H - L Proportional income tax rate = 0.1 Hourly wage: 5 Find the optimal C*, L*, N S *, and Tax revenue at the optimum.

27) Consider the following consumer's problem facing a proportional tax. Utility function over consumption (C) and leisure (L) U(C,L) = cl/ZLIIZ Total hours: H = 30 Labour hours: NS = H L Proportional income tax rate = 0.1 Hourly wage: 5 Find the optimal C\