Who says the Dems aren’t business friendly? Seems a Democratic member of Congress wants to give business folks at break when entertaining customers and clients by
proposing a boost in the federal tax deduction for business meals from 50% to a whopping 80%.
U.S. Representative Neil Abercrombie (D-Hawaii) introduced the legislation, which would make changes in the tax code.
The new rate would apply to legitimate business deductions and have the additional benefit of helping restaurants and small businesses.
As you can imagine, that’s good news for restaurant and small business owners, who’ll likely see an increase in traffic if the new deduction gets passed. Restaurants are a big driver of the economy, responsible for about $1.5 trillion that circulates through the industry.
It’s estimated that a an increase in the tax deduction for business meals to 80% will boost business meal sales by $6 billion a year and create an $18 billion increase to the overall economy.
The industry currently employs an estimated 13 million people, or 9% of the U.S. workforce.
The federal tax deduction for business meals was reduced to 50% in 1993.