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Old October 16th, 2008, 09:31 AM   #1
howell_jeep
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Default Why shouldn't we pay taxes on health care?

We pay income tax on our earnings. We pay taxes on other benefits such as sick or vacation days. Why shouldn't we pay taxes on health care benefits paid for us by employer? After all, it's part of a compensation for our work.

Why does the amount of taxes I pay be different on the form of payment. Let's say Joe's total compensation is $120,000 per year.

If Joe is paid the $120k as salary, goes to buy health insurance for $20k, he has to pay taxes on $120k.

If Joe is paid $100k as salary, and the employer buys health insurance for $20k, he has to pay taxes on only $100k.

How is this fair?
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