Let us illustrate the harmful effect of a direct tax, say income tax, on supply of work effort (., labour). In Fig. we have drawn the indifference curves of an individual between income and leisure. Suppose before taxation, the wage rate is depicted by the slope of the wage line NW 1 . The individual is in equilibrium at point A on indifference curve IC 2 where he is enjoying OL 1 leisure and working NL 1 hours. Suppose a proportional income tax at the rate of 50% is levied. As a result, after-tax wage rate is reduced and after-tax wage line shifts below to NW 2 . The individual moves to equilibrium point B on indifference curve IC 1 .
‘Don’t worry you will get use to the beatings as well as some of the strange things that take place here. Remember you are now a 24/7 latex slave, you will come to be very proud of your position by the end of your training. Now, you can help me in dressing in your slave’s suit. We must not delay!’ ‘S’ was soon completely encapsulated in her slaves uniform which comprised of black latex suit. The gloves and helmet were an integral part of the suit. The helmet with her name ‘SLAVE ‘S’’ on the forehead had a lockable zip at the collar as well as vinyl eye lens and inflatable gag. A tight latex corset pulled in her waist to maximum and left her taking shallow breaths. Her slave collar was locked onto her and her arms were fettered behind her back. She was led back to her cell where she was tethered to her bed with the fixing of a short length of chain from her collar to the ring bolt in the rail at the head of the bed. ‘Lizzie’ fixed a blindfold to her helmet, then fixed the heavy latex sheet over ‘S’ recumbent body and left without further ado. ‘S’ had no idea of the time but felt very tired and there was a nagging hunger in her stomach. She lay quietly in her latex covered bed wondering what would happen next but resigned to her fate at the hands of the Mistress.