Which statement is most accurate regarding the effect of taxation on the benefits that employers offer?

Which statement is most accurate regarding the effect of taxation on the benefits that employers offer?
A . Taxation has no effect on employee benefits; employers offer benefits for competitive reasons only.
B . Taxation is the primary reason that employers offer benefits; in the absence of tax incentives, employers would be unlikely to offer them.
C . Taxation affects the level of benefits offered, the source of benefits and the employer/employee cost-sharing basis.

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Answer: C