cts of Progressive Taxes on Labor Supply: ucing the Costs of Working Through Telecommuting: Consider an individual with preferences given by the formula U=LY. Assuming the going wage rate is $4 per hour and that the maximum time available per month is 400 hours. Also assume initially that the person has nonlabor income of $200. Suppose the individual incurs a fixed monetary cost of $100 per month associated with working an a fixed time cost of 30 hours per month