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On your W-2 they would just create a new box that says untaxed OT earnings. When you go on turbo tax, it will ask what number is in box 15. You input that. Pretty simple.
EITC has the problem that it can reduce wages. In contrast this proposal only increases the benefit for working OT; not the baseline wage. So might be harder for the employer to capture the benefit of the tax break.
I don’t think either has a big interaction with the system. But there is a point that this is targeted a bit more to help blue workers / less to help poor white collar worker and is harder to accrue the benefit to the corporation.
I wasn’t making a policy point about comparing blue collar to white collar but a political point.
The only policy point I would make is that I frequently find low paid white collar jobs anti productive (eg activist type jobs).
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