Tuesday, December 8, 2009

Making Transparency More Transparent

. Tuesday, December 8, 2009

I agree with all of this, but Klein misses the most important fact: wages are taxed, employer-provided health coverage is not. That seems like a pretty important distinction to me, since the marginal tax rate for most Americans is 40%. If average health benefits equal $13,500 in extra compensation as Klein says, the typical worker saves 40% of that, or $5,400 a year, by receiving it in the form of health coverage rather than cash.

I don't think that's the way it should be, but that's the way it is. I agree with Klein's calls for transparency, but that points in both directions. By not admitting that fact, Klein has done his readers a disservice.


Making Transparency More Transparent
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