Keep an eye on your employee benefits when you hear rhetoric about balancing the federal budget and dealing with the deficit.
If you were charged with the tough job of balancing a humongous budget with the goal of spreading the pain and assuring no large group benefited more than another, what would you do? I suspect you would look at your largest expenses first and at those expenses that are spread among the most people.
Remember these numbers:
$1,012,000,000,000 and $727,000,000,000
Those numbers (combined $1.7 trillion) are the tax expenditures for the federal government between 2013 and 2017 for exclusion of employer contributions for insurance premiums and medical care and exclusion of employer sponsored pension plan contributions and earnings (includes 401k plans).
That “exclusion” by the way is exclusion from your taxable income … Bingo!
It is only a matter of time. Watch what happens with tax reform and deficit reduction later this year.