Substitution Between Wage and Nonwage Benefits

TLDR

Keogh retirement plans allow individuals to defer taxes, yet many pay premiums personally without employer support. The study aims to persuade individuals to use corporate contributions to Keogh plans to reduce personal tax burdens. The authors propose shifting Keogh contributions from personal to corporate accounts, thereby lowering taxable income. John Updike, p.

Abstract

You gotta be kidding, Ollie. You're just robbing yourself. Schuylkill Mutual offers a terrific deal on Keogh, and we could plug you in, in fact we advise plugging you in, on the corporate end so not a nickel comes out of your personal pocket, it comes out of the corporate pocket and there's that much less for Uncle to tax. These poor saps carrying their own premiums with no company input are living in the dark ages. There's nothing shady about rigging it this way, we're just using the laws the government has put there. They want people to take advantage, it all works to up the gross national product. You know what I mean by Keogh, don't you? You're looking kind of blank. John Updike, p. 296