Presume the us governmentrsquos tax policies on employer


Presume the U.S. government’s tax policies on employer health coverage were to be changed. In particular, presume health premiums paid through the employer were no longer tax exempt. In its place, the government provides a 25 percent subsidy for all employer health expenditures. That is, the government gives a tax credit to the employer worth 25 percent of expenditures. How might this new policy impact who gets insurance? Will there still be a tendency for plans that have relatively high premiums and low OOP costs? In a paragraph or two, concisely answer these questions and clearly explain your reasoning

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: Presume the us governmentrsquos tax policies on employer
Reference No:- TGS0938818

Expected delivery within 24 Hours