Industry News

Trump’s tax bill set to hit corporate ticket market

Ticket demand among the corporate sector in the US could be negatively impacted by President Donald Trump’s recent tax legislation.

The finance bill, which made headlines around the world, slashed corporate and income tax when it was passed in December.

A less prominent feature of the legislation was that it eliminates a 50 per cent deduction for business-related expenses for “entertainment, amusement or recreation.”

It is thought the change could lead to a fall in businesses taking clients to sports events as well as concerts and theatre shows.

“I am a long-time, long-suffering season-ticket holder to the New York Jets, so a lot of time, I take clients,” Charles Capetanakis, a New York lawyer told Fortune.

“Eliminating the deduction is really going to hurt the small businesses that need to promote their business by entertaining clients.”

While the loss of the entertainment deduction will be softened by the cut in business tax, small and mid-sized companies are expected to cut their spending on tickets.

“Each company will have to decide for itself whether the higher after-tax cost of these expenses makes good business sense,” said Ed Sturm, a managing director at Deloitte Tax LLP, who heads the tax practice’s meals, travel and entertainment service areas.

IMAGE: MarineCorps NewYork