U.S. Reps. Jimmy Panetta (D-CA) and Darin LaHood (R-IL) introduced legislation last week that seeks to support workers in the tourism and hospitality industries, which lost more jobs in the pandemic than any other industry.
The Service Worker Economic Stabilization Act would reinstate the 50 percent Entertainment Business Expense Deduction and extend the 100 percent deduction for business meals (which is reduced back down to 50 percent at the end of 2022) through the end of 2024. The goal of the bill is to revitalize small businesses that are still reeling from the pandemic closures and economic challenges while investing in workers throughout the country.
“Our hospitality and tourism industry on the central coast of California continue to be impacted by inflation, labor shortages, and decreased business spending,” Panetta said. “Our legislation, the Service Worker Economic Stabilization Act, will help this industry regain lost business spending by extending the full deduction for business meals and restoring the deduction for business entertainment expenses. Ensuring our local businesses have customers during the week will give workers more regular hours and business owners more certainty, putting them on a path to a full recovery.”
Both Panetta and LaHood are members of the House Ways and Means Committee,
“State-mandated closures, inflation, and rising costs have wreaked havoc on communities and small businesses throughout Illinois, especially for our hospitality, travel, and tourism sectors,” LaHood said. “This bipartisan bill will provide support to affected small businesses and workers, giving them more certainty and helping them accelerate recovery.”
The bill has broad support from the tourism and travel industries, including the U.S. Travel Association.
“This critical bill will support small businesses and workers in America’s restaurants, theaters, arts, and entertainment venues by removing tax penalties that add to the challenges already plaguing the industry, such as our ongoing workforce challenges,” Tori Emerson Barnes, U.S. Travel Association executive vice president of public affairs and policy, said. “It will relieve pressure on business travel budgets and directly benefit still-recovering travel workers, particularly food and entertainment service workers, who would see a projected increase in household income of $62 billion over the next two years.”
It also has support from the hotel and restaurant industries, including the National Restaurant Association and the American Hotel & Lodging Association (AHLA).
“Business travel is vital to America’s hotel employees as well as the millions of other jobs our industry supports,” AHLA President and CEO Chip Rogers said. “But post-pandemic business travel recovery remains uneven, particularly in many major cities where employees are concentrated. And with hotel employment projected to be down more than 15 percent from pre-pandemic levels by the end of 2022, the Service Worker Economic Stabilization Act is a welcome solution that will encourage business travel and help hotels and hotel employees fully recover. The American Hotel & Lodging Association is proud to support this bill, and we thank Reps. Darin LaHood and Jimmy Panetta for their important work on this issue.”