According to the theory of individual labor supply,a reduction in income tax rates leads to:

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The theory of individual labor supply suggests that a reduction in income tax rates can lead to an unpredictable change in hours worked, as the outcome depends on the relative strengths of the income and substitution effects. These effects work in opposite directions: the substitution effect encourages more work due to higher after-tax wages, while the income effect might reduce the need to work because of increased disposable income.

According to the Theory of Individual Labor Supply,a Reduction in Income