The proposal wouldn't change the average net wage; effectively higher taxes on the well-off will subsidize those on lower income - not so much the unemployed, who already receive quite a lot of public subsidy, but those on minimum-wage/part-time jobs do a lot better under this scheme.

So hopefully this will a) reduce income inequality b) give better incentives for the unemployed, which may improve overall productivity.

I guess you could argue that a higher velocity of money means an increased money supply that has the same practical effects as inflation. IIRC economic thought is divided on this?