The idea implies the elimination of taxation on earnings derived from work exceeding normal working hours. As an illustration, if a person’s common hourly wage is supplemented by further compensation for hours labored past a normal 40-hour workweek, this extra compensation wouldn’t be topic to federal, state, or native revenue taxes.
Such a coverage doubtlessly incentivizes elevated productiveness and gives a bigger disposable revenue for people working prolonged hours. Traditionally, arguments for any such measure typically heart on stimulating financial progress by encouraging a higher workforce participation and rewarding those that contribute further labor. Moreover, proponents recommend that it might alleviate monetary burdens on working households.
