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It was an officially recognized practice beginning in 1943 during the War effort. Companies were finding it difficult to attract enough workers because of the limitations on wages imposed on them by the government. The companies began offering to pay health insurance expenses for their employees as a way to attract more employees since they couldn't increase their wages. In 1943 the IRS recognized this. In 1954 Congress codified this practice into the tax code. Portions of contributions that may be more more of a discussion or opinion in nature have been moved to the discussion page.

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Q: When did health insurance expenses become tax deductible for businesses in the US?
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