Debate Over Taxing Health Benefits Picks Up
"As the debate on how to fix health care picks up pace, so does discussion about one of the most lucrative ways to pay for it:" taxing employer-provided health benefits, CNN reports. The "tax-free arrangement" in which an employer"s contribution to employee health benefit "is treated as tax-free to the employee in terms of income tax and payroll tax," was "born during the days of wage control in 1943." According to Paul Fronstin, director of the health research program at the Employee Benefit Research Institute, employers were not allowed to "attract workers on the basis of better pay," so instead they offered the benefits "as a way to compete for the best talent." Over the past 66 years, employees have come to expect it. But "tax and health experts say it"s inequitable. High-income workers and those with the most expensive health insurance plans enjoy the biggest break as a result of the tax exclusion."
Mental Health