And it looks pretty clear that other suppliers like the Saudis - despite Iranian threats - are willing to step up to cover the additionaloutput required.
But to boost output and income, a tax cut must be the right type -- one that cuts taxes "at the margin" on the additional income associated with additionaloutput (supply).
This is because the additionaloutput of the last worker hired falls by 12.5% (as he works fewer hours), but the cost of employing him falls by less than 12.5% because the fixed costs of employment are unchanged.