In addition, higher contributions for Medicare and Social Security are expected while 401(k)s and other self-funded retirement plans continue to replace employer-funded defined benefit plans, particularly for state and local government workers.
As for exclusions, the biggest are employer-paid health insurance premiums and retirement savings, which benefit most taxpayers only a small fraction goes to high-income households.
The employer-sponsor has sought to derive a benefit from the retirement plan (which regulators have effectively sanctioned) and has tailored the plan to meet his objective.