Which type of employees benefited the most from tax-exempt employer-purchased health insurance? Employees in the highest...
Which type of employees benefited the most from tax-exempt employer-purchased health insurance?
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Employees in the highest tax brackets received the largest tax subsidy. |
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Low-income employees would otherwise not have received any employer-paid health insurance if it wasn't subsidized. |
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Employees who also had an ownership interest in the firm benefited most from the subsidy that went to the employer. |
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All employees benefited equally given that they all received the same tax subsidy. |
Homework Answers
Ans: Employees in the higher tax brackets received the largest tax subsidy
Rationale: The Employers under the higher tax slab get more subsidy than lower income workers.
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