House Republicans are considering taxing employer-provided benefits like transit passes, free meals, and on-site gyms to help offset the cost of Trump’s proposed $10 trillion tax cuts.
The move could generate $157 billion over 10 years but faces opposition due to its potential impact on worker morale and return-to-office policies.
Experts warn it could lower employee productivity and force companies to reconsider benefits.
While the proposal remains uncertain, lawmakers may be forced to adopt unpopular measures to fund the tax cuts amid a $36 trillion federal deficit.
House Republicans are considering treating work benefits such as employer-provided transportation, free food and on-site gyms as a new source of taxable income to help pay for President Trump’s tax cuts.
These tax proposals are still in the early stages and other aspects of Trump’s tax promises would help workers, such as tax breaks on tips, overtime pay and Social Security benefits.
The concept of taxing employee perks has been debated before in Congress and never made it far, but with the size of the deficit and Trump wanting trillions of dollars in expiring and new tax cuts, some budget pay-fors will need to be found, and this one would dip into workers’ pockets.