The phrase references an motion taken to doubtlessly alleviate the tax burden related to additional time pay. Extra time, on this context, refers to compensation earned by staff for working past a normal workweek, usually outlined as 40 hours. The thought behind such a measure is to permit people to retain a bigger portion of their additional time earnings, thus incentivizing work and boosting private earnings.
Such a coverage may have a number of potential advantages. Elevated take-home pay for additional time work may stimulate financial exercise via elevated client spending. It might additionally incentivize people to work extra hours, doubtlessly rising productiveness. Traditionally, changes to taxation on earnings, together with additional time, have been utilized as instruments to affect financial habits and supply monetary reduction to working people and households. The precise impact would depend upon the precise particulars of any applied coverage and the broader financial circumstances on the time.