Democrats wanted a tax credit for low income families. Republicans wanted a tax break for '3 martini lunches.'
To secure a compromise on a COVID-19 relief bill, both parties in Congress had to trade some proverbial "horses," even if one side viewed the other's as "unconscionable."
That's the word Sen. Ron Wyden (D-Ore.) used to describe the GOP's White House-backed tax break for corporate meal expenses, per The Washington Post. Proponents of the tax break, including President Trump, argue it will help boost activity for restaurants, but critics have derisively labeled it the "three-martini lunch" deduction, claiming it will really benefit business executives rather than the dining industry. But despite staunch Democratic opposition, it worked its way into the draft relief bill that Congress is hoping to pass soon.
The reason? Democratic leaders caved on the controversial tax break because their Republican counterparts agreed to expand tax credits for low-income families and the working poor in exchange for its inclusion, a Democratic aide told The Washington Post on condition of anonymity. Read more at The Washington Post.
Horses that reportedly got traded today: Repubs demanded tax break for corporate meal expenses ("three martini lunches"). Dems agreed, in exchange for expanded tax credits for low income families & working poor
Pretty much sums up the parties' prioritieshttps://t.co/pmDer0xbNb— Catherine Rampell (@crampell) December 21, 2020
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