Editing 78-05-A7 (section)

= Three Martini Lunch =

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=== Transcript ===
The administration in Washington is pretty upset about the tax deductibility
of the business lunch, I don't know how much additional revenue the government
would get by making such luncheons non-deductible, but I suspect there
wouldn't be much, not after you figure the decline in restaurant business
and the possible layoff of waiters and bartenders.

But, in touting their case, the tax collectors bleed and weep for the
working man who can't deduct his bologna sandwich. This has led to an
article in the Wichita Eagle and Beacon and which was mailed to me by
a reader of that paper. I thought you'd be interested in what it says.

Identifying himself as a working man himself, the writer says he really
hadn't been too worked up about the unfairness of allowing a deduction
for the three martini lunch and not the bologna sandwich. It seems he
rarely eats a bologna sandwich. He's "partial to pastrami and corned
beef with an occasional ham and swiss cheese for a change of pace."

Still he says, "To get a tax deduction out of the government you have
to start by getting the camel's nose--in this case the bologna sandwich
becomes deductible, it is a cinch that in a few years Congress will amend
the law to let working men deduct pastrami, corned beef and probably even
grilled cheese."

But then our philosopher becomes realistic and recognizes the government
isn't really interested in creating a tax deduction for the working
man--it just wants to eliminate the deduction for business lunches whether
they go to three martinis of not. He points out that since three martinis
have about the same effect as a hit on the head with a hammer the three
martini drinker probably couldn't care less whether they are deductible
of not.

Then he gets down to the real nitty gritty; tax deductions are created
to achieve a desired result. A deduction for interest on mortgages
encourages home building, for example. He says tax reform always fails
because the reformers always want to do away with deductions and the only
deduction the taxpayer wants eliminated is the one his neighbor has but
he doesn't. Therefore, he proposes that government increase the number
of deductions, We all love them so much we probably wouldn't even
notice that the tax rate had increased to make up for the lost revenue.
We'd be having too much fun bragging about the deductions we were taking.
There could even be a social gain. Secretary of H.E.W. Califano could
quit scolding smokers and give a tax deduction instead for quitting
the habit.

Suggesting that maybe Congress isn't ready for such advanced thinking,
our writer comes back to the bologna sandwich and says we should mobilize
the political clout of the workers to make bologna sandwiches deductible.
Today Martinis, tomorrow bologna, then a pastrami and maybe even a
day when us hot soup fellas will take a deduction. And it all started
with three martinis. 

This is Ronald Reagan.

Thanks for listening.
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=== Details ===
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<TR><TD WIDTH="150">Batch Number</TD><TD WIDTH="150">{{PAGENAME}}</TD></TR>
<TD>Production Date</TD><TD>04/03/[[Radio1978|1978]]</TD></TR>
<TD>Book/Page</TD><TD>[[Radio_Commentary_Books#Reagan.27s_Path_to_Victory|RPtV-283]]</TD></TR>
<TD>Audio</TD><TD></TD></TR>
<TD>Youtube?</TD><TD>No</TD></TR>
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===Added Notes===

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