I rise today to sound the alarm on a provision of the proposed reconciliation package that has ominous implications for New York City. The proposed reduction of the business-entertainment deductions contained in reconciliation could produce a job loss of at least 15,000 in the New York metropolitan area alone, and hundreds of thousands more job losses in business and tourist centers across America. The provision is, in effect, a new tax…If adopted, this provision would inflict deep wounds on New York City's second largest industry-tourism. Many experts fear that with the new tax, companies would drastically scale back use of meals and entertainment as part of doing business. That would directly affect restaurants, hotels, and theaters and trigger adverse ripple effects in industries like catering and conventions. New York is the premier arts and business center in the United States, so its economy depends heavily on business and entertainment. This reform would not only hurt the business community; it would also hurt the beleaguered arts community….The economic repercussions will be felt all across America: from New York City to Chicago to Las Vegas to Hawaii. As an export product, travel and tourism accounts for 11 percent of total U.S. exports of goods and services. Industry experts estimate that as much as $1 billion in new tax revenue will be raised from Manhattan alone. This is an ominous prospect. Worst of all, experts fear that this provision will be counterproductive as a revenue raiser, bringing minimal revenue benefit at great human cost.
Carolyn Maloney (D-NY), from the Congressional record
