Cap the untaxed employee benefits an employer can deduct
What the document says“the next Administration should set a meaningful cap (no higher than $12,000 per year per full-time equivalent employee—and preferably lower) on untaxed benefits”
The chapter frames this as reducing the tax bias against wages relative to benefits. It says benefit expenses other than tax-deferred retirement contributions should count toward the limit, including shared benefits such as employee gym facilities, that the cap should not be indexed to inflation, and that employers should be denied deductions for health insurance and other benefits provided to dependents aged 23 or older.
What the document actually says“the next Administration should set a meaningful cap (no higher than $12,000 per year per full-time equivalent employee—and preferably lower) on untaxed benefits”
Set a limit on tax-free job perks. No more than $12,000 a year per worker.
Some job perks are not taxed, like health cover. The book says that favors perks over pay. It wants a cap on how much can go untaxed.
No action is recorded against this proposal. That is not evidence that none has been taken. See what the tracker does not yet cover.