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Suppose that the labor supply of married women is very sensitive to the after-tax wage whereas the labor supply of men is not. The government

Suppose that the labor supply of married women is very sensitive to the after-tax wage whereas the labor supply of men is not. The government proposes to reduce the tax on income earned by married women by 5 percent, and raise the tax on earnings of married men by 15 percent. How would this tax change affect total tax revenues? How would it affect the distribution of income? What behavioral effects this tax change would have? Explain.

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