Tax Policy: Effects of Changing the Tax Treatment of Fringe Benefits

GAO reviewed the current tax treatment of employer-provided fringe benefits, focusing on: (1) the history and background of the exclusion of those benefits from taxable income; (2) the percentage of workers receiving such benefits and the types of benefits received; (3) the estimated amount of taxes foregone because of those benefits' tax-preferred status; and (4) how changes in the tax treatment of those benefits may affect tax equity and the level of benefits provided.