"People can also change the timing of when they earn and receive their income in response to government policies"

This quote by Arthur Laffer recommends that people have the capability to adjust their income in response to government policies. This might imply that people can pick to earn their earnings previously or later on in order to take advantage of particular federal government policies. For instance, if the federal government is offering tax rewards for people who earn their earnings previously in the year, individuals might select to do so in order to take advantage of the incentives. Similarly, if the federal government is using tax breaks for individuals who get their income later on in the year, individuals may pick to postpone their income in order to make the most of the tax breaks. This quote suggests that people have the power to adjust their income in order to benefit from federal government policies.