Employers can provide numerous benefits to their employees and the employees are permitted to exclude the value of these benefits from gross income.What are the effects of the exclusions on the following?
a.The benefit of an exclusion varies directly with the recipient's marginal tax rate.
Thus, individuals with the highest marginal tax rate enjoy the greatest benefit from
the exclusion and those taxpayers in the lowest marginal tax rate enjoy the least benefit.Also, the exclusions are generally available with the better-paying jobs.This also causes the tax system to be less progressive than were the exclusions
a.The progressiveness of the tax system.
b.The complexity of the tax system.

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The Answer of Employers can provide numerous benefits to their employees and the employees are permitted to exclude the value of these benefits from gross income.What are the effects of the exclusions on the following?
a.The benefit of an exclusion varies directly with the recipient's marginal tax rate.
Thus, individuals with the highest marginal tax rate enjoy the greatest benefit from
the exclusion and those taxpayers in the lowest marginal tax rate enjoy the least benefit.Also, the exclusions are generally available with the better-paying jobs.This also causes the tax system to be less progressive than were the exclusions
a.The progressiveness of the tax system.
b.The complexity of the tax system.

Employers Can Provide Numerous Benefits to Their Employees and the Employees