People respond predictably to positive and negative incentives.
Responses to incentives are predictable because people usually pursue their self-interest. Responses to incentives are predictable because people usually pursue their self-interest. Suppose you and your potential employer agree upon a particular job that you will be doing for him. He is just interested in the work to be done, and you are maximizing your after-tax income. The payment for this work falls into the lowest marginal tax category.