May
13
Prior to 1993, the Federal Tax deduction rate for business meals was set at a reasonable 80% of the total cost. Since then, the rate has been set at a lowly 50%, creating a vast distinction between all other business expenses which are set at 100%. Many small business owners and restaurateurs see this disparity as a cause for complaint.
The National Restaurant Association in conjunction with many members of Congress, have been lobbying to have the percentage restored to its original rate of 80% which would help ease the pockets for many who utilize dining as a critical means for conducting business. Representatives Shelly Berkeley of Nevada and Daniel Inouye from Hawaii, have been leading the legislation within the Senate floor to allow for the original rate to be reinstated.
In addition to the already long list of positive outcomes associated with increasing the Business Meal Tax Deduction rate, the most prominent being the generation of $18 billion for the economy and an almost $6 billion in business meal sales, according to the National Restaurant Association. “Increasing the business-meal deduction is critical to small and independent business, especially in foodservice, travel, tourism, and entertainment…It would also immediately help stimulate the economy.” states David Koenig, the Association’s Tax and Profitability Director.
The National Restaurant Association urges restaurateurs and small business owners to voice their opinion on the Business Meal Tax Deduction, and support the bill which would once again increase the meal deduction to 80%, and help to stimulate the economy and generate more business for the restaurant industry.
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