The Tax Exclusion for Employer-Sponsored Insurance Is Not Regressive--But What Is It?

This article explains the difference and then considers other distributional effects of ESI. It suggests that ESI—for those who receive it—further redistributes toward those with lesser means or greater need. The most evident effect is by need, favoring employees with families over those without. Yet there is good reason to believe there is also a redistribution by income, with the package of wages plus benefits being less unequal than wages alone would be. Therefore reformers should be much more careful before criticizing either ESI or its subsidy through the tax code as "unfair," especially as the likelihood of enacting something better in the United States seems quite low.
Source: Journal of Health Politics, Policy and Law - Category: Health Management Authors: Tags: Health Policy & Education, Political Science, General, Public Policy Beneath the Surface Source Type: research