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I'm surprised that the libertarian Misces Institute doesn't mention the mainstream theory that fringe benefits like health care were due to high taxes - %93 was
by saturdaysaint 10y ago
I'm surprised that the libertarian Misces Institute doesn't mention the mainstream theory that fringe benefits like health care were due to high taxes - %93 was the top rate. So employers were incentivized to attract employees using benefits.
- maxerickson 10y agoWhat percentage of the workforce was paid that rate? I imagine it was small enough (and they were wealthy enough) that it was not a big driver. The article does mention an incentive to provide benefits over wages though: More importantly, insurance programs benefited greatly from the federal Stabilization Act of 1942 which allowed companies facing scarce labor (during a time of price and wage control) to compete for this labor by offering health insurance benefits and by making those benefits exempt from payroll taxes.
- sn9 10y agoIt was mostly jacked that high so that American businessman wouldn't profit too much from WWII.