Did congress take the right approach

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Problem - The TCJA of 2017 changed the tax treatment of certain fringe benefits to better tie an employer's deduction for employee compensation with the amount employees report as wage income. The approach taken, such as for meals provided for the convenience of the employer and qualified transportation fringe benefits, was to retain the exclusion for the employee receiving these benefits but to repeal or reduce the deduction for the employer. Did Congress take the right approach? Or should Congress instead have allowed employers to deduct the cost of the benefits provided to employees with the employees including the benefits in wage income?

Reference no: EM132655487

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