Prepare for an attack on corporate welfare

✍ Scribed by Caroline D. Strobel

• Publisher: John Wiley and Sons
• Year: 1997
• Tongue: English
• Weight: 212 KB
• Volume: 8
• Category: Article
• ISSN: 1044-8136
• DOI: 10.1002/jcaf.3970080311

✦ Synopsis

resident Clinton has submitted to Congress a budget plan that would attack many of the so-called corporate welfare provisions P in return for additional federal spending on welfare, education, health benefits, and other favored projects. Most proposed tax changes will adversely affect corporations, with the exception of a few new tax breaks for individuals, primarily in the area of education tax breaks. Another area that will be negatively affected by his proposals is the securities industry. Congress will undoubtedly have an impact in molding final legislation, and you need to be alert to proposed changes that will negatively affect your business as the debate unfolds. This issue, my column will cover some administrative tax news, as well as some other miscellaneous provisions affecting corporate taxpayers.

New Per-Diem Travel Rates Issued

New per-diem travel rates have been developed for use in reimbursing employee business travel expenses. Instead ofreimbursing an employee's actual lodging, meal, and incidental expenses for business travel away from home, employers are allowed to use the standard government reimbursement rate. The use of a per-diem rate is treated as substantiated for tax purposes if the employee substantiates to the employer the time, place, and business purpose of the reimbursement. Actual bills and receipts do not need to be maintained.Any excess reimbursement must be returned to the employer. If these rules are followed, travel reimbursement will not have to be included in the income of the employee.

The General Services Administration has published an updated list of maximum per-diem rates to be used after 1996 to reimburse federal employees for travel within the continental United States. If a specific locality appears on the list, the actual rate on the list may be