One of many big questions is, how will the changes in the new tax law eliminating moving expense deductions mean that companies will change their policies? In particular will policies attempt to keep costs in line with prior years by reducing benefits, or perhaps shifting the tax burden of benefits to employees? Or will companies tax protect (gross-up) those previously tax-free items with no change in benefit?

Over time there will be some shift in policies. For many years the mobility industry has been fighting the trend toward lump-sum policies and now the easiest argument against them, the tax advantages in the direct benefit program is gone. It’s basic economics, the Law of Demand, organizations are unlikely to purchase the same quantities of moving services now that it will be dramatically more costly to provide them. I’d love to hear comments, companies are clearly looking for guidance!