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It is income, so are unrealized capital gains
Posted on: November 16, 2017 at 12:19:49 CT
Knucklehead MU
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I am an accountant. I freely admit that tuition reimbursement is income.
The public policy purpose of exempting that income from taxation is obvious. To promote education. Education produces benefits for society as a whole, beyond those which accrue solely to the student. This is called an externality. To a significant extent, those benefits are not accounted for under a "free market" approach to education, resulting in a sub-obtimization of resource allocations from the perspective of the nation as a whole.
In addition one could make arguments about risk adversion and cost of capital differentials. I.e. behaivoral economics.
Such resource allocation problems are common, not trying to make a federal case out of this. Indeed the actual subject of my prior post addressed the reliability of your representations.
Edited by Knucklehead at 12:22:37 on 11/16/17
The public policy purpose of exempting that income from taxation is obvious. To promote education. Education produces benefits for society as a whole, beyond those which accrue solely to the student. This is called an externality. To a significant extent, those benefits are not accounted for under a "free market" approach to education, resulting in a sub-obtimization of resource allocations from the perspective of the nation as a whole.
In addition one could make arguments about risk adversion and cost of capital differentials. I.e. behaivoral economics.
Such resource allocation problems are common, not trying to make a federal case out of this. Indeed the actual subject of my prior post addressed the reliability of your representations.
Edited by Knucklehead at 12:22:37 on 11/16/17
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It is income, so are unrealized capital gains - Knucklehead MU - 11/16 12:19:49
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