Trump’s Latest COVID19 Economic Ploy: Let Corporations Deduct Entertainment Costs

Entertainment Deduction Was Originally Eliminated As Part of Trump’s 2017 Tax Law

Washington, D.C. — During today’s White House press conference, President Trump announced that he’d direct Treasury Secretary Steven Mnuchin and Labor Secretary Eugene Scalia to “immediately” look into restoration of tax deductions for “meals and entertainment costs for corporations.” In response, government watchdog Accountable.US released the following statement:

“After giving corporations a massive tax cut in 2017, and showering them with a $500 billion bailout this week, now Trump wants to return to the days of tax deductible luxury suites and rounds of golf,” said Kyle Herrig, Accountable.US president. “With millions unemployed and facing the prospect of missing April’s rent in just a few days, the President should start putting the American people first in his response to this public health crisis. Workers need money in their pockets now, the season tickets and rounds of golf at Trump International can wait.”

From Trump’s Remarks Today: 

“I’m gonna tell Secretary Mnuchin and also our great Secretary of Labor, who you know very well, to immediately start looking into the restoring of deductibility of meals and entertainment costs for corporations. That set the restaurant business back a lot when it was done originally and then done not so long ago. And we’re gonna go to deductibility so that companies can send people to restaurants. I think it’ll have a tremendous impact and maybe keep them open.”

Background:

• MarketWatch: “Boxes at sports stadiums and arenas, if owned with the intention to entertain clients, won’t be deductible either under the new tax law.”
• CNBC: “Business owners can say goodbye to that tax break for steak dinners and game tickets
• Golfworld: “Golf took an unexpected hit in the new tax law. Will it cause lasting damage?”
• Miami Herald: “Miami-area golf resort brings Donald Trump more money than any other business”