Suppose your employer offered you $4000 in cash instead of health insurance coverage. Health insura Show more Suppose your employer offered you $4000 in cash instead of health insurance coverage.
Suppose your employer offered you $4000 in cash instead of health insurance coverage. Health insura Show more Suppose your employer offered you $4000 in cash instead of health insurance coverage.
Health insurance is excluded from state and federal income taxes (lets ignore Social Security and Medicare wage taxes for now). The cash would be subject to state income taxes (8%) and federal income taxes (28%). How much would your after-tax income go up if you took the cash rather than the insurance? Should you take the cash over the health insurance? Show less
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Suppose your employer offered you $4000 in cash instead of health insurance coverage. Health insura Show more Suppose your employer offered you $4000 in cash instead of health insurance coverage. Health insurance is excluded from state and federal income taxes (lets ignore Social Security and Medicare wage taxes for now). The cash would be subject to state income taxes (8%) and federal income taxes (28%). How much would your after-tax income go up if you took the cash rather than the insurance? Should you take the cash over the health insurance? Show less
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