[Congressional Record (Bound Edition), Volume 151 (2005), Part 5]
[Extensions of Remarks]
[Page 5929]
[From the U.S. Government Publishing Office, www.gpo.gov]




            ENDING TAX BREAKS FOR DISCRIMINATION ACT OF 2005

                                 ______
                                 

                        HON. CAROLYN B. MALONEY

                              of new york

                    in the house of representatives

                        Wednesday, April 6, 2005

  Mrs. MALONEY. Mr. Speaker, today we are introducing a bill to end 
government subsidies for private clubs that discriminate against 
Americans based on sex, race, or color. The Ending Tax Breaks for 
Discrimination Act of 2005 makes it illegal to deduct expenses at clubs 
with discriminatory membership policies. We think it's wrong for 
corporations to write off big expenditures for entertainment, meetings 
and advertising at clubs that keep women out on America's dollar. Men 
play and women pay.
  I am joined by my distinguished colleague, Representative Brad 
Sherman from California. In the early '90s Mr. Sherman, as a member of 
the California tax board, implemented legislation similar to this Act. 
Since then, other states have followed. The time for the federal 
government to take a stand and end government-subsidized discrimination 
is long overdue.
  Right now, conventions and meetings are considered legitimate 
business deductions for corporate income tax purposes, including those 
held at private clubs that discriminate. Half the price of a business 
lunch is deductible. But if you're a woman, you subsidize one half of a 
man's lunch with your taxes, even though you can't join the club.
  Augusta and other clubs on par with it are already way out of bounds 
by discriminating. For taxpayers to have to foot the bill for business 
conducted under these discriminatory conditions is obscene. This is 
something that comes into focus every Masters Week, but people need to 
know they are subsidizing discrimination every day of the year.
  Members of these clubs profit--either indirectly through career 
opportunities and board appointments, or directly through tax 
deductions. Women can't get these same financial gains--just because 
they're women. Men get the membership, the deal, the deduction, and 
women get the bill. Ending Tax Breaks for Discrimination Act of 2005 
would put a stop to that. It ends deductions for advertising, travel, 
accommodation and meals associated with these clubs, and it requires 
discriminatory clubs to print right on their receipts, ``not tax 
deductible''.
  This bill is not an attack on deductions for big business. Legitimate 
tax deductions should continue, but when these deductions support clubs 
that bar Americans from becoming equal partners, equal players, and 
equal earners--just because of their sex or race--they are NOT 
legitimate. The time for discrimination is over.

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