Suppose that individuals view their loss of income from imposing a single marginal tax rate as offset by the benefits of public services purchased with the revenues so that the (representative) individual is just as well off as before. How are their labor supply decisions affected? Decompose the change in hours worked into substitution and (combined) income effects. Use a leisure-goods diagram to conduct your analysis by decomposing the price decrease of leisure due to the imposition of the proportional income tax rate into a substitution effect (SE), an ordinary income effect (OIE) and an endowment income effect (EIE) of the price change.