Bill Overview
Title: Service Worker Economic Stabilization Act
Description: This bill suspends the disallowance of the tax deduction for business-related entertainment expenses in taxable years beginning in 2023 through 2024 and extends through 2024 the 100% deduction for business meals.
Sponsors: Rep. LaHood, Darin [R-IL-18]
Target Audience
Population: Workers in entertainment and food service industries
Estimated Size: 20000000
- The bill affects business entities that claim tax deductions related to entertainment and meals.
- Service industry workers, particularly restaurant staff and food service providers, are likely impacted as these industries often rely on business entertainment and meals for revenue.
- The extension of the deduction benefits businesses that frequently entertain clients as part of their operations.
Reasoning
- The policy primarily supports businesses that can claim deductions for meals and entertainment, which indirectly supports service industry workers. However, not all workers will see a direct impact, as the effect depends on the size of the business and how much it engages in deductible activities.
- The scope of 'Service Worker Economic Stabilization' applies to hospitality and potentially to entertainment-focused venues that benefit from corporate spending. This means it indirectly affects restaurant staff, entertainment venue workers, and those employed by caterers.
- Some workers in large metropolitan areas where business dining is more prevalent may experience a more noticeable impact.
- The policy budget limits the extent and intensity of its impact across a diverse group of service industry workers, likely affecting larger entities more noticeably than small ones.
Simulated Interviews
Waitress (Los Angeles, CA)
Age: 28 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 8/20
Statement of Opinion:
- This policy could potentially increase business meals at my restaurant.
- More clients lead to higher tips and better shifts.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 4 |
Bartender (New York, NY)
Age: 32 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 5/20
Statement of Opinion:
- The policy might help bring in more corporate events.
- If business picks up, I could see better tip income.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 7 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Restaurant Manager (Chicago, IL)
Age: 45 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 1.0 years
Commonness: 10/20
Statement of Opinion:
- I believe the bill will increase our business meal numbers slightly, but most of our revenue comes from families not business meals.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Chef (Austin, TX)
Age: 29 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 7/20
Statement of Opinion:
- I see some potential for increased demand for high-end business dining, which might boost my job's stability.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Event Planner (Las Vegas, NV)
Age: 53 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 4/20
Statement of Opinion:
- More tax deductions could mean more corporate events, boosting my commissions and job security.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 5 |
Caterer (Miami, FL)
Age: 40 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 6/20
Statement of Opinion:
- I expect this policy to make our services more attractive to businesses, potentially increasing bookings.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Freelance Photographer (Seattle, WA)
Age: 37 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 2.0 years
Commonness: 9/20
Statement of Opinion:
- An uptick in corporate event budgets could mean more work for me.
- I'm cautiously optimistic about the positive impact.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Coffee Shop Barista (San Francisco, CA)
Age: 24 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 14/20
Statement of Opinion:
- I doubt this policy affects my work significantly, as our clientele is more casual.
- Could see a slight increase if office events are more common though.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Hotel Concierge (Denver, CO)
Age: 41 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 12/20
Statement of Opinion:
- May see more inquiries for dining and entertainment recommendations tied to business conventions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
HR Manager in a tech firm (Boston, MA)
Age: 38 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 11/20
Statement of Opinion:
- Budget extensions from the policy could make it easier to plan team events.
- Expect more leeway in scheduling team meals and entertainment.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Cost Estimates
Year 1: $1000000000 (Low: $900000000, High: $1100000000)
Year 2: $1050000000 (Low: $950000000, High: $1150000000)
Year 3: $0 (Low: $0, High: $0)
Year 5: $0 (Low: $0, High: $0)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The policy will primarily affect corporate taxpayers in industries that utilize client entertainment.
- Food service and entertainment industries may see a short-term revenue boost.
- Long-term impacts depend on potential extensions and how businesses adjust spending habits as a result of the policy.