If the consumer has the same tax bill under a head tax as under an income tax,then less leisure will be consumed under the head tax than under the income tax.

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Quizplus · Accepted Answer

Under a head tax, everyone pays the same amount regardless of their income. Therefore, individuals with higher incomes who value their leisure time more will be incentivized to work less in order to keep their after-tax income the same. This will result in less leisure consumption compared to an income tax where individuals are taxed based on their income level.

If the Consumer Has the Same Tax Bill Under a Head