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 (1Ñ100 employees) Midsize companies (101Ñ1,500 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.

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