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View Diary: I am Tired of the Taxpayers Paying For Food For Rich People (229 comments)

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  •  According to this 2009 (3+ / 0-)
    Recommended by:
    Catte Nappe, Tonedevil, night cat

    article, eliminating the deduction would likely result in substantial savings:  

    In the only study that directly scrutinized business entertainment expenditures, the Library of Congress in 1979 determined that if Congress were to enact legislative reforms similar to the ones we propose, approximately $1.2 billion of revenue could be raised annually. Since the issuance of that study 30 years ago, GDP has grown nearly sixfold, suggesting that the revenue generation associated with this proposal could easily exceed $7 billion annually. However, because Congress has somewhat restricted the deductibility of entertainment expenses since 1986 (for example, imposing a 50 percent deduction limitation under section 274(n), as well as adding restrictions on club dues and the like), a more realistic estimate of the amount of revenue our proposal would raise annually would be in the neighborhood of $4 to $5 billion.
    Good article, btw - compares the deduction to a form of "genteel" commercial bribery. Heh.

    Out with the gloomage - in with the plumage!

    by mikidee on Fri Sep 20, 2013 at 09:25:22 AM PDT

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