Tax treatment of fringe benefits

What is more beneficial to you?

If you are working for a company that offers you a fringe benefit worth $200 or if you are working for another company that doesn't offer any fringe benefits but perhaps pays you a bit more, say $400 and  you are in a 50% tax bracket.

Here is a calculation:

If you are for instance in a 50% tax bracket, to purchase the same item you would need to earn $400 first. Once you have earned $400, you would pay $200 in taxes on it (50%), and you would have $200 left that you could spend on this product.

Comparing the two options now: assuming you are in the 50% tax bracket, the company that offers you a $200 fringe benefit would clearly be preferable economically compared to the company offering ANYTHING BELOW $400 in wages.

-------------------------------------

I am a law student, not a lawyer. This website is composed as a personal study aid for myself as I study law, it does not contain legal advice and I am not your lawyer. Please seek legal advice from a lawyer, not a blog.