The Family Tax Cut

The assumptions and calculations underlying the simulation results were prepared by the authors and the responsibility amount as a FTC credit, which is then subtracted for the use and interpretation of these data is entirely that of the from their federal taxes payable. [...] PBO estimates of the changes in hours and income induced by the FTC are also sensitive to the Figure A-6: Sensitivity of labour income response to assumptions regarding the uncompensated wage relative elasticity of earners elasticity of workers.10. [...] If the elasticity of the primary earner is doubled, while the secondary’s The magnitude of the FTC’s impacts on labour held constant, there remains a small negative labour supply is accentuated when the estimated supply impact on hours (Figure A-5) and a small responsiveness of both spouses is increased. [...] The labour supply response of each of worker, as measured by the change in their annual hours and Elasticities of women have declined over time in line income, is calculated using the per cent change in with their stronger attachment to the labour force.17. [...] Box B-4: Aggregate labour supply response Re-arranging the formula from Box B-2, the labour supply response of a given worker, measured in hours worked per year, is determined by multipying the per cent change in the marginal effecitve wage by the worker’s labour supply elasticity and by the total hours worked per year: The impact on the aggregate labour supply is.