78-05-A7

- Main Page \ Reagan Radio Commentaries \ 1978

<< Previous Broadcast

Next Broadcast >>

Three Martini Lunch

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.		Details Batch Number 78-05-A7 Production Date 04/03/1978 Book/Page RPtV-283 Audio Youtube? No
		Added Notes