When considering an income tax of the form Y=(1-t)wH where Y = income, t = tax rate, w = wage rate, and H = labour
When considering an income tax of the form Y=(1-t)wH where Y = income, t = tax rate, w = wage rate, and H = labour hours, we can conclude that it would be distortionary because it will O alter the labour-leisure trade-off. O alter the relative trade-off between consumption choices. O alter the relative trade-off between consumption choices and alter the labour-leisure trade- off. O This is a trick question: this is not a distortionary tax
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