elasticity of labor supply depend upon? 5. Discuss the implications of "supply-side" tax cuts (lower marginal tax rate on earned income/wages) on labor supply. Account for the presumed effect of income tax cuts on the incentives to work in the labor-leisure framework developed in chapter 6. Be sure to address both the income and substitution effects. Discuss the implications of a marginal tax rate cut for men assuming the elasticity of labor supply for men is negative. Discuss the implications of a marginal tax rate cut for women assuming the elasticity of labor supply for women is positive