The proposed modifications to the federal tax code below the earlier administration included provisions affecting the taxation of employee compensation. One facet thought-about was the potential elimination of levies on earnings exceeding commonplace work hours. As an illustration, an worker incomes an hourly wage who works past a 40-hour week might need seen these further earnings shielded from sure taxes.
Such a coverage change may have probably incentivized elevated work hours and boosted employee take-home pay. Proponents argued that decreasing the tax burden on further earnings would stimulate financial exercise and supply monetary aid to working households. Traditionally, discussions round altering tax buildings associated to wages have typically centered on selling financial development and simplifying tax compliance.
