New tax plans… now they want to tax worker benefits

Saw this article about new tax proposals and it looks like some lawmakers are floating the idea of taxing worker benefits like office perks and transit passes to help cover corporate tax cuts.

Would they actually go through with something like this, or is it just talk? What would this even mean for regular workers?

Or, hear me out, maybe we stop handing out more tax cuts to billionaires who don’t need them.

Delaney said:
Or, hear me out, maybe we stop handing out more tax cuts to billionaires who don’t need them.

CNBC isn’t taking a side here, just reporting who would be paying the tax. Not sure what you’re expecting from them.

Delaney said:
Or, hear me out, maybe we stop handing out more tax cuts to billionaires who don’t need them.

Corporate taxes don’t just affect billionaires. Workers, customers, and shareholders all end up paying in different ways. The US already taxes businesses more than many other countries.

I’d rather see corporate taxes lowered to zero and instead increase taxes on dividends and capital gains. That way, you’re actually taxing the people making money off the system rather than the businesses themselves.

@Nico
Only way I’d be okay with that is if corporations were banned from donating to political campaigns and executives faced real consequences for shady business practices.

So my company rents office space in a building with a tiny gym that a few employees use… what’s the ‘taxable value’ of that?

Good luck trying to tax office gyms or free snacks.

The article makes it sound like just another idea being tossed around, nothing serious yet.

Miller said:
Good luck trying to tax office gyms or free snacks.

The article makes it sound like just another idea being tossed around, nothing serious yet.

They’ve been ‘tossing around’ a lot of nonsense lately.

https://www.youtube.com/watch?v=oj6NMiuU0ys

If they tax free meals as income, wouldn’t that make it fully deductible for the employer? Kinda like when companies have to 1099 people for trips or prizes.

If this actually happens, tax compliance is about to get a lot more complicated.

Taxing transit passes might actually happen.

1 - They can easily assign a value to them.

2 - It mostly affects workers in big cities, which tend to vote blue.

At this rate, are they gonna tax my desk space too? What about my chair? Is sitting on the floor a taxable upgrade?

Funny thing is, maybe 1% of employees actually use those office gyms, if they even have one.

Guess this would make more people use it… but nobody wants to see Bob from marketing in the locker room.

I would love for healthcare benefits to get taxed just so people who were against the ACA can finally feel what it’s like to have their benefits messed with. Maybe then we can move forward with Medicare-for-All.

@Clovis
Even with employer-provided healthcare, most people still pay out of pocket. There are very few jobs where it’s completely free.

I’ve had company healthcare for years and still supported the ACA when it was introduced. Having work-based insurance doesn’t mean you’re against better coverage options.

@Merlin
My last two jobs covered 100% of health insurance. One of those companies has 90,000 employees, so I’d guess plenty of big employers do the same.

Weston said:
@Merlin
My last two jobs covered 100% of health insurance. One of those companies has 90,000 employees, so I’d guess plenty of big employers do the same.

That’s pretty rare. My company has way more than 90k employees, and we still have to cover part of the cost (even though it’s pretty reasonable).