Using Payroll Deduction to Shelter Individual Health Insurance from Income Tax

Using payroll deduction to shelter individual health insurance from income tax.

OBJECTIVE To assess the impact of state laws requiring or encouraging employers to establish "section 125" cafeteria plans that shelter employees' premium contributions from tax. DATA SOURCES Available descriptive statistics, 65 key-informant interviews, and relevant documents in study states and nationally, 2008-2009. STUDY DESIGN Case studies were conducted in Indiana, Massachusetts, and ...

Reforming the Individual Income Tax

Starting in the late 1970s the Tayloe Murphy Institute, which was one of two institutions that combined to form the Weldon Cooper Center for Public Service in 1987, published a series of monographs on fiscal issues in the Commonwealth of Virginia. Six papers were eventually published. In the mid-1980s the series was discontinued. Many topics had been covered and did not require immediate reexam...

Paying for individual health insurance through tax-sheltered cafeteria plans.

When employees without group health insurance buy individual coverage, they do so using after-tax income--costing them from 20% to 50% more than others pay for equivalent coverage. Prior to the passage of the Patient Protection and Affordable Care Act (PPACA), several states promoted a potential solution that would allow employees to buy individual insurance through tax-sheltered payroll deduct...

Labor Market Responses to Payroll Tax Subsidies

In a high tax, high minimum wage labor market like France, payroll subsidies can reduce the minimum labor cost and expand employment opportunities for the low-skilled. Effects of these subsidies go beyond the directly affected. A particular concern is that high quality jobs may be replaced with lower quality ones, which hurts the employment opportunities of highly skilled workers and is costly ...

Effective Tax Functions for the US Individual Income Tax : 1966