How do current tax laws in the United States favor employer-based health care insurance?
A) Individuals who receive health insurance benefits are allowed to deduct the value of these benefits from their taxable income.
B) Employers who provide health insurance benefits are reimbursed by the government and are not taxed on these reimbursements.
C) Individuals who receive health insurance benefits do not pay taxes on the value of these benefits.
D) Health insurance companies that provide insurance to employers are subject to a lower tax rate than those insurance companies that provide insurance to private individuals.
Answer: C
You might also like to view...
According to the traditional Keynesian approach, if the government increases taxes, then
A) real Gross Domestic Product (GDP) will fall and the price level will remain constant. B) real Gross Domestic Product (GDP) will fall but the price level will rise. C) both real Gross Domestic Product (GDP) and the price level will fall. D) real Gross Domestic Product (GDP) will remain constant but the price level will rise.
If you buy an insurance policy with a high deductible and co-payments, you would end up paying
a. A higher premium b. A lower premium c. The premium of a low risk individual d. Both B&C
What effect does the following transaction have on the U.S. balance of payments?(Choose the proper debit and credit entries.)The U.S. Federal Reserve intervenes to puchase U.S. dollars in the foreign exchange market
a. Debit the U.S. financial account; credit the U.S. financialaccount. b. Credit the U.S. financial account; debit the U.S. financialrccount. c. Debit the U.S. financial account; credit the U.S. current account. d. Credit the U.S. financial account; debit the U.S. current account.
All of the following are advantages of organizing a business as a sole proprietorship EXCEPT
A. limited liability. B. ease of decision-making. C. single taxation. D. ease of formation.