I 108th CONGRESS 2d Session H. R. 4352 IN THE HOUSE OF REPRESENTATIVES May 12, 2004 Mr. Emanuel (for himself, Mr. Brown of Ohio, Ms. Lee, Mr. Lantos, Mr. McGovern, Mr. Israel, Mr. Stark, Ms. Schakowsky, Ms. Hooley of Oregon, Mr. Grijalva, and Ms. DeLauro) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to deny a deduction for the portion of employer-provided vacation flights in excess of the amount of such flights which is treated as employee compensation.

1.

Short title

This Act may be cited as the &short-title1;.

2.

Denial of deduction for employer-provided vacation flights in excess of the amount of such flights treated as employee compensation

(a)

In general

Paragraph (2) of section 274(e) of the Internal Revenue Code of 1986 (relating to expenses treated as compensation) is amended by adding at the end the following: The amount allowable as a deduction by reason of this paragraph with respect to an aircraft provided by the taxpayer shall not exceed the expenses for goods, services, and facilities relating to such aircraft which are treated as such compensation and wages.. (b)

Reduction in public debt

The increase in Federal receipts in the United States Treasury by reason of the amendment made by subsection (a) shall be used solely for reduction of the public debt, and for such purpose the Secretary of the Treasury shall deposit an amount equal to such receipts in the account specified in section 3113(d) of title 31, United States Code. (c)

Effective date

The amendment made by subsection (a) shall apply to expenses incurred after the date of the enactment of this Act in taxable years ending after such date.