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Health insurance became tied to employment in WWII, when the government imposed wage controls. To attract employees while getting around wage controls, fringe b
by pcvarmint 10y ago
Health insurance became tied to employment in WWII, when the government imposed wage controls. To attract employees while getting around wage controls, fringe benefits were added instead of increased pay. [1]
[1] http://www.nber.org/papers/w14839.pdf http://www.nber.org/papers/w14839.pdf
- em3rgent0rdr 10y agoSure that was one of many contributing factors. A couple sentences later that study affirms the point I was making: "Finally, in a landmark 1954 ruling, the Internal Revenue Service clarified an earlier administrative court ruling regarding the income tax status of ESI by exempting such benefits from income taxation and adding this provision to the tax code."