Last year's reduction in the business-meal tax deduction -- from 80% to 50% -- should affect the spending of small and midsize companies. Among some 300 companies surveyed, most have changed or plan to change their travel-and-entertainment policies.
|Small companies (1Ã‘100 employees)||Midsize companies (101Ã‘1,500 employees)|
|Have taken or anticipate taking some action that could reduce restaurant spending||65%||79%|
|Anticipate spending less at fine dining establishments||28%||27%|
|Anticipate spending less at fast-food restaurants||21%||16%|
|Anticipate spending less at family-style restaurants||5%||4%|
|Anticipate spending more at moderately priced restaurants||0%||7%|
Source: "Business Meal Deductibility Study," American Express, New York City, February 1995.* * *