A tax subsidy is involved in employer-financed health insurance because

A) all working adults are covered by Medicare.
B) all working adults are covered by Medicaid.
C) employer payments for health insurance are not subject to income or payroll taxes.
D) corporations that provide health insurance pay lower corporate income tax rates.

Tax Subsidy

Financial assistance provided by the government through tax benefits, reducing the tax burden for certain activities or taxpayers.

Employer-Financed Health Insurance

A health coverage plan provided by an employer to their employees as part of the employment agreement and benefits package.

Income Taxes

Taxes levied by a government on individuals or entities based on their income or profits within a given tax period.