The Amount of Cash Fringe Benefits Received Under a Cafeteria

question 34

True/False

The amount of cash fringe benefits received under a cafeteria plan is taxable to an employee.

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Definitions:

Deadweight Loss

A loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved or is not achievable.

Tax Revenue

The income gained by governments through taxation, used to fund public services and government obligations.

Excise Taxes

Taxes levied on the sale of specific goods and services, often included in the price of products like gasoline, alcohol, and tobacco.

Cigarettes

Small cylinders of finely cut tobacco leaves rolled in thin paper for smoking.