ABSTRACT
The influence of tax incentives is most evident when the behavior of the six large corporations of this study is compared with that of the three small corporations. All the small corporations sponsored defined contribution plans as the source of income protection for their retirees. Therefore, the Congressional acts did not cause the three small corporations to make any structural changes or to change their methods of funding plans. Three variables—the corporate philosophy and mission, the demographics of corporate employees and the source of funding—associated with the tax incentives were found to play interdependent roles in corporate decision making regarding income security plans. Congressional tax incentives serve to subsidize the funding of the income security plans in these corporations and are seen as important to the general revenue picture. It is evident that the economic system has been expanded by tax incentives to produce and distribute a social surplus.
