In The Labor Market , There Is A Decrease In Tax Rate

in the labor market , there is a decrease in tax rate .

while in the diagram of wages and employment, there is a shift downwards of the labor supply curve.

Describe the economic intuition behind the movement in the wage rate 𝑤 in response to the tax cut. Further, you are told that the Government is not happy with the change in wages and is considering making any adjustments to wages unlawful. What would be the economic and fiscal implications of such policy?

explain your findings

(limit your answer to 150 words)