A tax subsidy is involved in employer-financed health insurance because

Question

Quizplus · Accepted Answer

Employer payments for health insurance are not subject to income or payroll taxes, which is a tax subsidy. This makes it cheaper for employers to provide health insurance to their employees. Medicare and Medicaid are not directly related to employer-financed health insurance, and there is no evidence that corporations providing health insurance pay lower income tax rates.

A Tax Subsidy Is Involved in Employer-Financed Health Insurance Because