Asking the Wrong Question

My goodness. I think that those who are speculating over whether the “Cadillac tax” on high ticket employee insurance plans will increase wages are asking the wrong question. The real question is whether it will increase net compensation and IMO the answer to that question is obviously “no”.

That’s certainly what labor union members think. That’s why they’re squawking so much about it.

1 comment… add one
  • PD Shaw Link

    Wouldn’t it also follow that rising employer healthcare insurance costs will tend to reduce wages?

    Since employers have recently been required to report total healthcare costs per individual on W-2 forms, we may get better analysis of how total compensation is increasing or stagnant.

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