Whether the government should impose a tax on employers to provide workers with benefits such as unemployment insurance or mandate employers to provide workers with benefits, which are normally benefits such as health insurance or workers compensation will ultimately depend on how much their employees value the benefit. Mandated benefits are those benefits that are protected by federal law. Firms are liable to make these benefits available to their employees and failure to do so will result in severe penalties. Payroll tax is relatively different from mandated benefits for the reason that payroll taxes are imposed on the wage of employees, which are either paid by the workers or the firm. When analyzing to see how successful a mandated …show more content…
From the previous discussion it is clear that mandated increases in health insurance participation which could have a significant labor market effects, causing changes in the market wage and in the number of workers employed. The recent substantial increase in malpractice payments and premiums for physician malpractice insurance has greatly increased the cost of employer provided health insurance. Due to these increases it is estimated that there will be a decline in employment, a cutback in the number of hours worked, and as well as reduction in wages of workers with employer provided health insurance. Providing health insurance threw mandates or payroll taxes entirely depends on if there will be a shift in the supply curve. The reason the supply curve shifts in mandates is because workers valued the benefits. There is no shift in the supply curve when it comes to payroll taxes for the reason that there is an implicit assumption that the benefit is not tied to employment. However, benefits provided through taxes could possibly be tied to employment and that would alter the supply curve. If the benefit is tied to employment, as it is in this case, it does not matter if it is funded through a mandated benefit or payroll tax. Workers will value the benefit provided by either one,
Imagine a world where you are working overtime, seven days a week, yet your kids are starving. You can’t get the education you need because you don’t have the time and money to afford it, and you can’t change jobs because this is the only one you can get. Unfortunately, this is the reality for millions of Americans living today. The federal minimum wage is too low to help families, and actually mathematically speaking, too low to survive on. The quality of life for minimum wage families is terribly low, and that is unacceptable. As humans, we should be looking after others and helping the poverty come out of their continuous cycle. Raising the minimum wage would not only help families be able to afford a better quality of life, but help them to afford healthy food, get an adequate education, and invest in the necessary health care they need.
Considering other points of view, federal mandates defend the well-being of all Americans by setting nationwide environmental and economic standards. The minimum wage, clean air standards, and workplace safety have all been defined by various federal mandates. These mandates are the most effective way of ensuring that these minimum requirements are met on the local level. Local authorities, if left to their own devices, might not always respect these standards. Different states, for instance, might compete for business by adopting lesser minimum wage standards and triggering a “race to the bottom.” The 1995 Unfunded Mandates Reform Act prevents abuses of this system by providing financial assistance when necessary to state and local governments.
In today’s America, there are many people who would either be disgusted at the very mention of Welfare or be highly grateful for its existence. I believe that in order for welfare to be more effective in America, there must be reform. From the time of its inceptions in 1935, welfare has lent a helping hand to many in crisis (Constitution Rights Foundation). However, at present many programs within the system are being abused and the people who are in real need are being cheated out of assistance. The year after the creation of welfare unemployment was just about twenty percent (Unemployment Statistics). The need for basic resources to survive was unparallel. Today, many people face the same needs as many did during the 30s. Some issues with
Currently, in the United States, the federal minimum wage has been $7.25 for the past six years; however, in 1938 when it first became a law, it was only $0.25. In the United States the federal minimum wage has been raised 22 times since 1938 by a significant amount due to changes in the economy. Minimum wage was created to help America in poverty and consumer power purchasing, but studies have shown that minimum wage increases do not reduce poverty. By increasing the minimum wage, it “will lift some families out of poverty, while other low-skilled workers may lose their jobs, which reduces their income and drops their families into poverty” (Wilson 4). When increasing minimum wage low-skilled, workers living in poor families,
If you and your significant other had a child, would you want to be there to not only support your partner, but to see your child’s first milestones in real life? Of course you would! The problem is most parents miss crucial parts of their child’s life because of the lack of paid maternity and paternity leave in the United States. New families, across the nation, should be allowed a minimum six months of paid maternity leave.
Then came the question, should the employer be the one responsible for providing health insurance. While everyone on the panel could agree that our health care system in 2008 was broken, most seemed opposed to the alternative solution of universal healthcare. There is an incentive to the company to offer health insurance to a human being that may receive the opportunity to receive health insurance from another company. However, taking health insurance responsibility away from the employer and making it the government’s responsibility would increase availability and possibly eliminate freedom of
(c) a requirement that firms with over 50 employees offer coverage or pay a penalty, (d) a major expansion of Medicaid, and (d) regulating health insurers by requiring that they provide and maintain coverage to all applicants and not charge more for those with a history of illness, as well as requiring community rating, guaranteed issue, non-discrimination for pre-existing conditions, and conforming to a spec...
The steady rise of healthcare costs and the ever increasing cost of health insurance premiums are making it harder and harder for employers to pay healthcare premiums for their employees. In the past, it was almost a given that employers picked up the tab for health insurance coverage. The health coverage was usually exceptional with little or no money paid out of pocket by the individual for the insurance premiums. Those appear to be the “good old days”, with fewer and fewer employers shelling out money for health insurance premiums and demanding a larger percentage to be paid by the employee. Other employers are simply unable to financially provide healthcare coverage for their employees and have stopped all together.
Insurance should not be mandated as in United States there are a lot of individuals which are not able to pay for the health insurance and is unaffordable for them to get the health insurance. So if the insurance is done mandatory these people have to purchase the health insurance in any case. This gives rise to another question that if they don’t have enough resources to buy the Health Insurance
Taxes in relation to the new healthcare reform is a prominent topic when one examines the supporting and opposing sides of the law. New taxes on businesses producing medical equipment and new Medicare taxes on investments have been established. For individuals and businesses choosing not to participate in purchasing health insurance there will be a penalty called a "shared responsibility" tax. The accrued money from these taxes is being used, among other things, to provide low-cost insurance plans on the marketplace and to create subsidies for those purchasing the plans. Through these subsidies, "any individual making up to $45,960 or a family of four with household income up to $94,200 is eligible" ("Obamacare tax guide") to qualify and get assistance at the end of each year to off-set the cost of the insurance even more...
Paul Fronstin, EBRI (2001). Workers and Access to Health Care: Consequences of Bing Uninsured. Retrieved February 27, 2012, from http://www.ebri.org/pdf/publications/Books/economic_cost_of_uninsured.pdf
Employer benefits must be competitive to attract and keep quality employees but the federal government recognizes that “perk” benefits will not prepare and sustain employees for everything. Federally required employee benefits supported by both the employer as well as the employee such as Social Security, Worker’s Compensation Insurance, and the Family Medical Leave Act are important benefits to our society by providing certain assurances for a stable tomorrow.
It is very difficult to live in America if you are living off of minimum wage, and many Americans are living off of it today. Raising minimum wages has its benefits like gaining more money to live better, but people do not see the down side of the increases in wages. With the increase in minimum wage, it also causes the cost of living to increase. How can this help the economy or help people? Minimum wages in America should not be increased because it will cause cost of living to increase, reduce employment, and cause businesses to lose money and workers.
The quantity medical care and issue depending on citizen preference, test, and income, the cost of the treatment and care depend on the cost of expenses minimize the point of service and market price set. The expense depending on the elasticity of medical care and demand as well on this situation the arrows welfare proposition (Pauly p. 532). Information problems can lead to a range of chance inefficiencies and purposeful troubles for the establishment of health care and health insurance by markets there is particular concern about the moral-hazard problem and opposing collection as subsets of unbalanced. Some of these problems, most noticeable and markedly, the Affordable Care Act dedicated practically fully of historically increasing government involvement through the insurances. The market failures afford to cover the arrow identified that the government support and undertake the insurance under any circumstances. The economic emphasizes that an equilibrium stretched through the goods forces and merchandise prices the market problem because of other equilibrium will make contributors be better off. Welfare measure, without making another person worse off is a value judgment. The health care problem and condition is extremely objective in value, and norms by decision maker under health and economics
The United States passed bill that health insurance should be mandatory in the year 2014. Under the Patient Protection Affordable Care Act, each person is required to have at least a minimum level of health insurance failure to, the individual will face a penalty. The mandatory health insurance issue has faced reactions from both sides with some people supporting while others opposing. It is mandatory for every individual to purchase a health insurance depending on their earnings. The health care insurance is mandatory for all US citizens, and all legal residents in America. It is considered as an individual responsibility requirement, and those without this insurance are subject to a tax penalty of $750 per year up to a maximum of three times that amount ($2,250) per family. However, there are exemptions for financial hardships, incarcerated persons, religious objections, and undocumented immigrants. Mandatory health insurance is important, and should be applied in all states because, everyone gets ill and at one time, they have to visit a health care facility for medical services. In addition, it protects the health future of families, and protects people from unexpected high medical costs because they are covered.