President Trump, Robin Young, Robin Farzad discussed on Here & Now
I'm Robin Young is here and now tucked away in the Corona virus relief bill among the much needed unemployment relief and the one time $600 checks for Americans. Is a new deduction for corporate meal expenses. Now there's a 19 fifties madman cocktail culture term for these business meals. It's the three martini lunch and they were 50% deductible. Now it's 100%, a tax break championed by President Trump is a way to help restaurants in the pandemic. Just one of dozens of tax breaks sprinkled through the more than 5000 pages of this bill. Robin Farzad, host of public radio's full disclosure has read them all wealth. Maybe most him, Robin, Start with this tax break for the three martini lunch 100% deductible. Why That sweetens the pot. I mean, corporations are now look at this. It hasn't been 100% deductible since I believe the 19 eighties. I mean, Gordon Gekko was doing it. President Trump came out. For it In the spring, he remarked, They'll send their executives. They'll send people there and they get a deduction. That is something that will really bring life back to the restaurants. I think make them harder than before. Well, and Democrats did not want this, but they gave it up for something else, or they took it for something else. What did they get? Well, Democrats traded it for relief on the earned income tax credit an additional child tax credit s O that will prevent the tax code from punishing people who weren't able to Hit a certain threshold of income this year. So both credits are kind of a backdoor way of getting extra cash when you could only kind of negotiate for a 600 or $300 payout, otherwise right and what our restaurants saying in response to this idea that you know everybody arguing that it's good for the economy, what restaurants say and what of economists say. Of tax considerations are not the first thing that comes to mind when you're dining out. Clearly Cove it is the biggest damper on you know the full ticketed sit down restaurant experience right now. And if that's what you are chiefly worried about in there far more direct ways to rescue and backstop restaurants, which we know they're in a depression, So there is some gratitude, no doubt in the National Restaurant Association. It said. That's fresh. Small business funding in the paycheck protection program is going to help their members. But you're also seeing please firm or direct relief. So many of these restaurants are not going to be able to survive the winter and hang on just long enough for a full fledged Host vaccine returned to kind of dining out with desserts and wines and tips and fully staffed restaurants. Right well, the bill also included other tax benefits that will stay in place after the pandemic is over. Can you just give us the laundry list in the minute? We have Yeah, I mean, it's a priority for each party the legal protections for businesses operating during the pandemic. Republicans really had sought that there's direct aid for state and local governments that Democrats and some GOP lawmakers had had pressed to include this kind of some last second pork barreling their provisions for flood control in the Army Corps for Amtrak for mass transit bailouts for Um you know, mass transit operators that are deeply in the red. So Ah, Lot of this is being looked at as a stopgap for president elect biting and whatever he could negotiate with the Senate that is or isn't of the other parties. And, by the way is that three martini lunch deduction shooting up 200%. Is that a permanent tax credit remains to be seen. If that can be clawed back. I think it is going to remain controversial. It is being looked at at face value is something that helps the restaurant industry. But the 50% thing.