United States Congress, House, Committee on Ways and Means, Hearings, President's 1961 Tax Recommendations, Vol. I (87th Cong., 1st sess., 1961), 12–13.
2.
However, a businessman in the 91 per cent income tax bracket who controls a corporation paying a tax rate of 52 per cent might invite twenty, provided he did not have to pay his own share out of taxed income under the Sutter rule.
3.
Lobbying expenses have been treated separately from entertainment expenses by Congress in legislative proposals.
4.
The specific proposal of the Treasury was to exclude cost of food and beverage in excess of $4 to $7 per person per day except where the food was furnished primarily to employees on the employer's premises, or where connected with travel. It was suggested that expenses of meals and lodging on business trips be limited to 200 per cent of the government per diem allowance, $32 per day. CaplinMortimer M., “The Travel and Entertainment Expense Problem,”Taxes, XXXIX, No. 12 (December, 1961), 954.
5.
Shifts from such expense classifications as advertising, administration, and communications to entertainment probably would not occur because those expenses normally are fully deductible.
6.
Hypothetically, if the rate were progressive, outlays up to one per cent of gross sales might be exempt, between one and two per cent of gross sales taxable at ten per cent, say, between two and four per cent of gross sales at seventeen per cent, and between four and six per cent of gross sales at twenty-two per cent, etc.
