Why Is the Current U

question 43

Multiple Choice

Why is the current U.S. tax-treatment of health insurance purchased through one's employer discriminatory?

• A) Health insurance should not be a tax-deductible expense for anyone.
• B) The system gives preferential tax treatment to self-employed individuals.
• C) The system imposes higher taxes on the direct purchase of health insurance because it is not tax deductible.
• D) The system gives preferential tax treatment to people who purchase health insurance directly from a provider.

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Definitions:

Expense Capital Assets

The process of recording the cost of a capital asset as an expense over its useful life, often through depreciation or amortization.

Not-for-profit Organization

A type of organization that does not distribute its excess profits to owners or shareholders but instead uses them to help achieve its goals.

Capital Fund

A fund created for the purpose of undertaking capital projects or investing in long-term assets, funded by capital expenditures or external financing sources.

General Fund

The primary operating fund of a government, covering general operations and services not accounted for in special-purpose funds.