This does hit home. My significant other got a 600€/month pre-tax raise. Her net raise? 120€. She could actually go work 80% and hardly lose anything at all.
I did that for a while just because. Three day weekends are nice even without the rationale of progressive taxation.
Overall I'm not sure if a tax that encouraged it would be such a bad thing. It's obviously against the protestant work ethic which makes it seem almost unthinkable in America but it'd probably be healthier overall.