Thursday, April 22, 2021
Goldburn P. Maynard Jr. (Indiana University, Kelley School of Business; Google Scholar) presents Business Meals or Bust virtually at Indiana University, Maurer School of Law today as part of its Tax Policy Colloquium Series hosted by Leandra Lederman:
The three-martini lunch deduction, as it has often been called, has a long, boondoggle-filled history. The deduction for business meals was an important enough Republican prerogative that it was at the center of last-minute stimulus negotiations that resulted in a second recovery bill in December 2020. Yet, the 100 percent deduction was almost universally panned by economists and tax policy experts. This essay argues that the passage of the deduction is an example of dogmatic, ideology driven policymaking that relies on the human need for stories to make sense of the world.
It suggests that these efforts cannot be undermined with data, as its adherents are not responsive to such arguments.