II 109th CONGRESS 1st Session S. 298 IN THE SENATE OF THE UNITED STATES February 7, 2005 Mr. Inouye introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to repeal the reduction in the deductible portion of expenses for business meals and entertainment.

1.

Repeal of reduction in business meals and entertainment tax deduction

(a)

In general

Section 274(n)(1) of the Internal Revenue Code of 1986 (relating to only 50 percent of meal and entertainment expenses allowed as deduction) is amended by striking 50 percent and inserting the applicable percentage. (b)

Applicable percentage

Section 274(n) of the Internal Revenue Code of 1986 is amended by striking paragraph (3) and inserting the following: (3)

Applicable percentage

For purposes of paragraph (1), the term applicable percentage means the percentage determined under the following table: For taxable years beginningThe applicable  in calendar year—percentage is— 200570    2006 or 200775    2008 or thereafter80. . (c)

Conforming amendment

The heading for section 274(n) of the Internal Revenue Code of 1986 is amended by striking Only 50 percent and inserting Portion. (d)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2004.