An opinion column in the Wall Street Journal argues that “companies that buy health insurance on behalf of workers are, in effect, giving them some of their compensation in the form of benefits. But employers get to use pretax dollars when they purchase this insurance. If workers try to buy their own policies, most don’t get the same tax break.”
a. What is “pretax income”?
b. Does the current tax break for employer-provided health insurance likely make the overall tax system more progressive or more regressive? Briefly explain.