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Even if companies wanted to do the right thing and keep the overall pay constant (history would suggest otherwise), because of the way benefits like healthcare are treated by the tax system, getting rid of benefits would make all employees worse off - basically more of your income would go in tax. I don’t think this is an ideal outcome.

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> Even if companies wanted to do the right thing and keep the overall pay constant

It has nothing to do with what companies want. They don't pay an employee $X because they like to get rid of money, they pay $X because if they offered less that employee would go elsewhere and they would have to settle for a less productive employee, or none at all.

Actually it is a bit more complex than this. There is a lot of stickiness in wages, but ultimately all wages are set at the margin. Assuming an efficient market then any change from tax efficient benefits to straight salary will result in an effective cut to the employee.

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