3 ms·
Not to mention the fact that companies can write off insurance contributions against tax, and individuals can recieve that benefit without paying income or payr
by richmarr 8y ago
Not to mention the fact that companies can write off insurance contributions against tax, and individuals can recieve that benefit without paying income or payroll tax on it. In effect that's a subsidy in favour of the middle classes and 1% to the tune of "between $174 billion and $429 billion over a six-year period".
https://www.nytimes.com/2017/07/07/health/health-insurance-tax-deduction.html https://www.nytimes.com/2017/07/07/health/health-insurance-t...
(Edited to include the missing point about income/payroll)
- harryh 8y agoYou say this like it's some special provision in the tax code, but it's not. Companies pay taxes on profits, not revenue. And insurance contributions (like many many other things) are an expense that reduces profits.
- richmarr 8y agoYep... thanks, wrote that too quickly, I'll update
- harryh 8y agoAh, I was wondering if you meant to mention that health care benefits are (in most cases) not taxable and I see with your edit that you did. I agree with you on that point. It's a big problem. Interestingly, McCain proposed fixing this during the 2008 election and was slammed for it by Obama.