I think it should be taxable.
It is compensation (income).
No matter what you have left after taxes, you shop for the best deals on everything ... so why not insurance and medical care too?
No matter what you have left after taxes, you shop for the best deals on everything ... so why not insurance and medical care too?
Lets say that I currently make $50K/year AND that I have a FREE medical benefit from my employer that costs $4K/year.
NOW, the employer is going to give me $4K so that my wages EFFECTIVELY increase to $54K/year.
The healthcare still costs $4K/year, BUT it is now TAXABLE INCOME to me.
SO, 30% is taken for all combined taxes, leaving me with $2.8K for healthcare that STILL costs $4K.
I NOW have to make up the difference [$1.2K] - EFFECTIVELY LOWERING my $50K wages to $48.8K.
TELL ME - who's getting SCREWED, ME or the COMPANY ???
It is me since I just got EFFECTIVELY hit with a $1.2K "TAX" in order to pay for the healthcare ...