(28 points) In 2017, President Trump and Congress cut the top federal marginal tax rate from 40% to 25%. Recent estimates in the empirical literature in public economics suggest an uncompensated elasticity of labor supply with respect to the net wage of 1 and a compensated elasticity of 0.50 for married secondary earners. Assume that the typical married secondary earner falling into the top federal tax bracket would earn $50 per hour and work 2,000 hours in the absence of the income tax. a. (4 pts) Briefly describe in words the substitution effect on labor supply for an individual in the top bracket from the reduction in the marginal tax rate from 40% to 25%. b. (4 pts) Briefly describe in words the income effect on labor supply for an individual in the top bracket from the reduction in the marginal tax rate from 40% to 25% c. (4 pts) Calculate the deadweight loss for a typical married secondary earner facing the top bracket rate under the pre-Trump tax law. d. (6 pts) Based on the principles of deadweight weight loss, briefly explain how you would expect the deadweight loss for a typical married secondary earner facing the top bracket rate to change after vs. before the tax law was enacted. e. (4 pts) In practice, calculate how much the deadweight loss changed for a typical married secondary earner facing the top bracket rate under the post-Trump tax law. f. Based on the class lectures, what are the best estimates of the average deadweight loss from the taxation of earned income in the United States for i. (3 pts) Primary earners (traditionally, men)? ii. (3 pts) Secondary earners (traditionally, women)? (28 points) In 2017, President Trump and Congress cut the top federal marginal tax rate from 40% to 25%. Recent estimates in the empirical literature in public economics suggest an uncompensated elasticity of labor supply with respect to the net wage of 1 and a compensated elasticity of 0.50 for married secondary earners. Assume that the typical married secondary earner falling into the top federal tax bracket would earn $50 per hour and work 2,000 hours in the absence of the income tax. a. (4 pts) Briefly describe in words the substitution effect on labor supply for an individual in the top bracket from the reduction in the marginal tax rate from 40% to 25%. b. (4 pts) Briefly describe in words the income effect on labor supply for an individual in the top bracket from the reduction in the marginal tax rate from 40% to 25% c. (4 pts) Calculate the deadweight loss for a typical married secondary earner facing the top bracket rate under the pre-Trump tax law. d. (6 pts) Based on the principles of deadweight weight loss, briefly explain how you would expect the deadweight loss for a typical married secondary earner facing the top bracket rate to change after vs. before the tax law was enacted. e. (4 pts) In practice, calculate how much the deadweight loss changed for a typical married secondary earner facing the top bracket rate under the post-Trump tax law. f. Based on the class lectures, what are the best estimates of the average deadweight loss from the taxation of earned income in the United States for i. (3 pts) Primary earners (traditionally, men)? ii. (3 pts) Secondary earners (traditionally, women)