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How did I misstate your position? Do you or do you not believe that the labor supply will be the primary limiting factor in the economic expansion that we will experience when the FairTax is enacted?

We weren't talking about the real economy, we were talking about an economic model. That you can't tell the difference is troubling. Any reasonable person knows that the labor supply cannot increase 30% in one year.

Any reasonable person knows that the labor supply cannot increase 30% in one year.

Are you saying people won't want to work more hours or look for more earning capacity from leaving retirment to be able to take advantage of taxfree earning, investment and savings?

Labor supply does not necessarily mean more people nor even more jobs or work hours available to fill excess demand.

Increased labor supply can be nothing more than a surplus demand for income looking for expression wherever or however it may be manifested. Whether in looking for overtime hours, second jobs, second incomes in household that now have only one worker, home businesses, new startups, folks looking for income generally how ever they perceive possibilities is an expression of labor supply.

Such demand can undoubtedly be nothing more than initial impulse dying down rather rapidly, which id quite natural for any significant, obvious changes in incentives. When one considers marginal taxation rates on labor falling from 40%+ to zero and perceived taxation of expenditure rise 30%. I would be extremely suprised not to see for an impulse to increase income wanting make more use of otherwise unproductive leisure time.

Any dramatic change is usually accompanied by large initial reactions, only degree can be debated. But 30%?? especially of short duration. Would you feel better with say 15% or 20% or 25%? where would you say an initial short term impulse to earn more might drive desire a desire for more work or economically productive hours?

I'll guarandammtee you that if workers could work an extra 12 hours a week, tax FRee, most of them would.

The Marxist inspired progressive income tax is a HUGE disincentive for most workers to put in overtime -- when the greedy hand of government is a 50/50 partner in human enterprise, the desire to expend extra effort diminishes quite rapidly. Most of us would rather go fishing or somesuch.

I'd wager that a 30% suppression of the labor supply by the Marxist inspired progressive income tax is probably a very conservative estimate.

"Any reasonable person knows that the labor supply cannot increase 30% in one year."

Any reasonable person understands that outsourcing is one part of the labor supply and it is one part that has been increasingly visible over the past few years.

I'll try this one more time. Do you or do you not believe that the labor supply will be the primary limiting factor in the economic expansion that the FairTax will create?

A yes or no answer will suffice.