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Matching problem - similar problem re: tuition assistance
Posted on: November 16, 2017 at 12:33:59 CT
Knucklehead MU
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Although capital gains are an economic gain, they are not taxed until they are realized. This matches the payment of the tax with the period in which the gain is converted to cash.
Taxing tuition reimbursements creates a matching problem. The education in theory increases future wages. By taxing the remimbursement you are creating a time mismatch. The tax occurs in the current year, the benefit obtained by the student occurs years into the future.
Edited by Knucklehead at 12:38:08 on 11/16/17
Taxing tuition reimbursements creates a matching problem. The education in theory increases future wages. By taxing the remimbursement you are creating a time mismatch. The tax occurs in the current year, the benefit obtained by the student occurs years into the future.
Edited by Knucklehead at 12:38:08 on 11/16/17
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Matching problem - similar problem re: tuition assistance - Knucklehead MU - 11/16 12:33:59
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