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The fact that employer-paid health insurance premiums are not taxed as income is a direct result of the wage-and-price controls established in the US in WWII.
by sib 10y ago
The fact that employer-paid health insurance premiums are not taxed as income is a direct result of the wage-and-price controls established in the US in WWII.
"Employer-sponsored health insurance plans dramatically expanded as a direct result of wage controls imposed by the federal government during World War II. The labor market was tight because of the increased demand for goods and decreased supply of workers during the war. Federally imposed wage and price controls prohibited manufacturers and other employers from raising wages enough to attract workers. When the War Labor Board declared that fringe benefits, such as sick leave and health insurance, did not count as wages for the purpose of wage controls, employers responded with significantly increased offers of fringe benefits, especially health care coverage, to attract workers."
- https://en.wikipedia.org/wiki/Health_insurance_in_the_United_States https://en.wikipedia.org/wiki/Health_insurance_in_the_United...