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Senator Tom Harkin has proposed a new tax credit for corporate wellness program:
The Healthy Workforce Act would provide a tax credit of up to $200 per employee for the first 200 employees, and up to $100 per employee thereafter, to businesses that offer comprehensive wellness programs.
The Senator's press release has this statement:
Employer spending on health promotion and chronic disease prevention is a good investment. Studies have reported a proven rate of return ranging from $2 to $10 for each dollar invested. Workplace wellness programs are also economical, averaging $30-$200 per employee.
If it's such a good deal, why does it need a tax credit? Employees would be tripping over themselves to do it anyway. Is it perhaps because... it's not such a good deal?
Like most tax credits, the benefit would go to people already are doing what the program would subsidize - in this big instance companies that have both wellness programs and good lobbyists. In honor of the proposal, we are reopening the voting on our good deed tax credit poll:
Your vote counts!
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The items included in the Tax Update Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation.
Joe Kristan writes the Tax Update items, and any opinions expressed or implied are not necessarily shared by anyone else at Roth & Company, P.C. Address questions or comments on Tax Updates to