In his latest blog entry, Ceridian’s Capitol Hill Consultant Jim O’Connell reports on a recent paper by the Congressional Budget Office (CBO) exploring options to reduce the U.S. government’s annual budget deficit. The paper identifies tax exclusions for employer-sponsored health insurance as costing “the federal government about $250 billion in foregone revenues each year.” Given the historically high level of federal public debt ($17 trillion) and the parallel rollout of the Affordable Care Act, changes to this fundamental tax policy will almost certainly be considered, according to O’Connell.

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CBO Identifies Tax Exclusions for Employer-subsidized Health Insurance as a Drain on Tax Revenue

Dec 10, 2013

In his latest blog entry, Ceridian’s Capitol Hill Consultant Jim O’Connell reports on a recent paper by the Congressional Budget Office (CBO) exploring options to reduce the U.S. government’s annual budget deficit. The paper identifies tax exclusions for employer-sponsored health insurance as costing “the federal government about $250 billion in foregone revenues each year.” Given the historically high level of federal public debt ($17 trillion) and the parallel rollout of the Affordable Care Act, changes to this fundamental tax policy will almost certainly be considered, according to O’Connell.