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Revision as of 00:18, 16 June 2016
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biscuit True, this tax policy change would likely spur some employers to no longer provide health insurance. Would this mean that workers would effectively take a pay cut? No. Both wages and insurance are a cost to the employer, and employers are indifferent about providing one or the other. In a competitive labor market, we need not depend on the benevolence of the employer to increase wages. If employees chose to purchase the same health insurance package their employer had purchased for them in the past, they are no worse off than before.
