Which statement accurately reflects the effects of taxing labor income?

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It motivates dishonest individuals to participate in the black market.It encourages older adults to leave the workforce sooner.It leads to all the outcomes mentioned in the other options.It causes secondary earners to withdraw from employment.It results in employees reducing their working hours.

Explanation

Taxes on labor income can have multiple impacts: they may push dishonest workers into the underground economy, prompt older workers to retire earlier, discourage secondary earners from working, and cause employees to cut back on hours. Therefore, all the effects listed are true.