Timmy elsewhere

At the ASI.

Remarkably, there are four economic things we do better than the Americans.

2 thoughts on “Timmy elsewhere”

  1. I’ve just been listening to this podcast, they’re a bit patronising but explain the issues quite well. The following one on discount rates isn’t bad either and it touches on one of your favourite subjects, climate change and Stern.

  2. “2) End the tax deduction companies get for providing health-care to employees. It’s not tax deductible here: and I think it’s a taxable benefit in kind, isn’t it?”

    You’re right that it is a taxable benefit in kind for the employee (and for employer’s NI).

    However it is a tax-deductible expense for the employer, as are the costs of all employee benefits (provided the employer’s a business, rather than just you employing your nanny or cleaner).

    I don’t know what the US position is. If it’s tax-deductible for the employer and tax-free for the employee, then that’s an obvious distortion compared to cash salary. In which case the UK treatment (making it a taxable benefit in kind for the employee) is actually a better solution, because it gives the same tax treatment as cash wages.

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