Both high-income and low-income employees are covered by cafeteria plans. Under such plans, all employees may select
Question:
Both high-income and low-income employees are covered by cafeteria plans. Under such plans, all employees may select from a list of non-taxable fringe benefits or they may elect to receive cash in lieu of these benefits.
a. Which group of employees is more likely to choose nontaxable fringe benefits in lieu of cash? Explain.
b. Is this result desirable from a social or economic point of view? Explain.
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Related Book For
Federal Taxation 2018 Comprehensive
ISBN: 9780134532387
31st Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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