II 112th CONGRESS 1st Session S. 907 IN THE SENATE OF THE UNITED STATES May 5, 2011 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 80 percent. (b)

Conforming amendment

Section 274(n) of the Internal Revenue Code of 1986 is amended by striking paragraph (3). (c)

Clerical 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, 2011.