In January 2000, delegates at the founding convention of the Canadian Alliance (a predecessor to the current Conservative Party) voted to make a 17 percent “flat-rate” tax the cornerstone of the new party’s election platform. The shift would reduce the top marginal rate applied to high-income individuals. Part of the rationale was to give highly productive Canadians renewed incentives for work. Use the graphical model of leisure– income decisions to analyze the effect of a lower marginal tax rate on a high-income individual.