The core concept centers on the absence of taxation on compensation earned for work exceeding standard working hours. This implies that earnings beyond a typical work week, often 40 hours, are not subject to income taxes, potentially increasing take-home pay for eligible employees.
The potential elimination of taxes on extra earnings could provide a financial incentive for individuals to work additional hours. Historically, such proposals have been debated for their potential to stimulate economic activity by encouraging increased productivity and providing more disposable income to the workforce. The impact on businesses and the overall economy remains a subject of ongoing analysis.
