Create Universal Savings Accounts and cap untaxed employer benefits to favor wages
Mandate proposes USAs up to $15,000 post-tax (Roth-like, flexible withdrawals) and a hard cap (≤$12,000 per FTE, preferably lower, not inflation-indexed) on deductible untaxed employer benefits excluding most retirement contributions, plus denying dependent health deductions for dependents 23+.
Mandate
Mandate Ch. 22 (Treasury) — Universal Savings Accounts: contribute up to $15,000 (inflation-adjusted) post-tax earnings with Roth-like treatment and flexible withdrawal; Wages vs. Benefits: set a meaningful cap (no higher than $12,000 per year per FTE—preferably lower) on untaxed benefits employers can deduct; deny deductions for health/other benefits to dependents aged 23 or older.
Undo plan
1) Reject benefit caps that shrink employer health coverage and shift costs to workers.
2) If promoting savings accounts, design without gutting EITC/child supports.
3) Protect dependent coverage for adult children in school/young adulthood.
4) Use tax reform that does not punish comprehensive benefits packages.
5) Verify: coverage rates and out-of-pocket cost trends.