Global Business Travel Association in a Jan. 14 letter cautioned members about
"likely" corporate tax reforms in the United States this year and
possible ramifications for the business travel industry. "Traditionally
accepted business deductions, including the travel and entertainment tax
deduction, remain at risk," wrote executive director Michael McCormick.
suggested 2013 "will be a year for the business travel industry to be on
guard and vigilant." For now, the "fiscal cliff" deal signed
into law this month, according to McCormick, "provides our industry some
certainty on taxes and preserves" T&E expense deductions.
Expenses for transportation to a destination, transport at a
destination, meals, lodging, tips, phone calls and Wi-Fi, entertainment and
other items typically are deductible for organizations taxed in the United
States. If that benefit were removed in order to help the nation balance its
books, business travel could take a serious hit.
U.S. Travel Association represents travel suppliers. Director of domestic
policy Erik Hansen said that while this is the first time he had seen GBTA
addressing possible changes to T&E deduction rules, he wasn't surprised.
"One of the things we've learned in this turbulent climate is that we
should look out for any priority to be on the table," he said.
said that while both the government and private sector could "be
smarter" in terms of managing travel, such across-the-board decisions as
removing the deductibility of T&E expenses would have a
would mean Congress is choosing to increase revenue over job creation and
expanding the economy," he said.
declined to indicate what prompted it to highlight the issue, other than to
reference congressional plans to consider tax reform.
in a statement wrote that GBTA would advocate for tax reform that strengthens
the business travel industry. "Reasonable
business deductions, including the travel and entertainment deduction, remain
vital to facilitating business travel growth," he wrote, "and we will
fight to preserve this provision."