Word: deductions
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Dates: during 1980-1989
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Each day millions of dollars are spent, and later legitimately deducted from income as business expenses, for food, liquor, sports tickets, airfares and club memberships. When businesses and individuals provide food and entertainment to further their business, they should deduct fully the necessary and proper expenses. However, these deductions, when not correspondingly reported by the recipient as income, substantially reduce the amount of money collected by the Treasury Department by several billions of dollars every year When the recipient of the "free lunches" fails to report the inducement as income, the expected deficit the administration faces grows larger. There...
...definition that it constitutes "income from whatever source derived" as the income tax statute states. This means that the recipient gets a free lunch or "income," without having to pay taxes on it. The lunchers must discuss some "business matters" for the business or individual buying the meal to deduct it as a business expense...
...reporting and subsequent tax accounting could easily be done just like reporting taxable in interest from bank savings accounts: the recipient of the free lunch tells to the generous lunch purchaser his or her social security number In order for the business to deduct the "necessary and proper" expense, the business would have to record and report the recipient's 9 digit social security number. At the end of the year the recipient would get a form similar to the W 2 or 1099 tax form which shows the dollar amount of free lunches, or free airfares, or free dinners...
...Administration is also considering a lid of $120 a month on the tax-deductible health-insurance premiums that an employer can pay for each worker, and perhaps letting individual taxpayers deduct only medical expenses that exceed 10% of annual income, vs. 3% now. That proposal is politically explosive, since it would raise the tax bills of people who are hard-pressed by illness. The rationale: medical inflation is being fanned because the underwriting of bills by private insurers or the Government gives neither hospitals, doctors nor patients any incentive to hold down costs. Another possible proposal: eliminating the deductions that...
...live in squalid shacks with communal latrines and no running water. Fruit and vegetable growers assert that they pay the minimum wage, but the money is often funneled through labor contractors who actually hire the workers. In many cases, these so-called crew chiefs, who are usually immigrants themselves, deduct exorbitant amounts from worker salaries for food, rent and transportation...