A Flurry of Rebound Legislation

WASHINGTON —  A high-speed train to Las Vegas. The return of the three-martini lunch. A tax write-off for vacationing in New York City.

Those are among the novel ideas gaining momentum in the post-Sept. 11 Congress as lawmakers jockey to combat terrorism, even as they seek to help their own ailing regions.

Just about everybody in Congress has an idea to deal with the attacks, from selling war bonds and establishing a Radio Free Afghanistan to creating an anti-terrorism czar.

Sen. Barbara Boxer (D-Calif.) has proposed reopening the Travel and Tourism Administration, a federal office that was shuttered in 1996 to save money. A bipartisan group of House members is sponsoring the I Love NY Tax Deduction Act, which would allow tax deductions of $500 for individuals and $1,000 for families on food, hotel and entertainment expenses in New York City for the next year. And Sen. Russell D. Feingold (D-Wis.) has proposed the Volunteers for Safe Skies Act that would notify pilots when police officers and other emergency personnel are aboard and available to help during emergencies.

Among the proposals gaining ground since the attacks are high-speed rail projects, including a proposed magnetic levitation train that would whisk gamblers and tourists from Anaheim to Las Vegas at about 300 mph.

Senate Majority Whip Harry Reid (D-Nev.), a booster of the train, is putting together a $40-billion package of infrastructure spending and tax cuts that would include $12 billion for high-speed rail projects throughout the country. Presumably, a portion would go to the Anaheim-Las Vegas project, expected to cost $9 billion.

The project has a powerful supporter in the Republican-controlled House too. Rep. Don Young (R-Alaska), chairman of the Transportation Committee, said during a hearing Tuesday on his proposed $71-billion railroad infrastructure bill that the terrorist attacks “demonstrated even more the need for transportation alternatives.”

“The increase in the time it will now take to clear airport security has added to the time it takes to travel by air, making high-speed rail a competitive alternative in some regional markets,” Young said.

The tax deduction that corporations can claim for business meals was slashed from 80% of the tab to 50% by Congress in 1993 as part of President Clinton’s deficit-cutting plan.

Now, business lobbyists--and some members of Congress--are pushing tax breaks for travelers, including a 100% deduction on business meals.

“We need tourism to triumph over terrorism,” said Rep. Carolyn B. Maloney (D-N.Y.), whose I Love NY Tax Deduction Act would offer tax incentives, but only for travel to New York City. She said the legislation was inspired by Mayor Rudolph W. Giuliani’s remark that America could help New York by coming to the city and spending money.

Predictably, lawmakers from other states want to offer tax incentives to help tourism-related industries in their own states suffering from continuing public anxiety about air travel.

Rep. Neil Abercrombie (D-Hawaii) said he sees greater interest in a bill he has introduced repeatedly since 1993 to restore the business meal and entertainment tax deduction to 100%. He also is looking at introducing legislation to allow vacationers to take an undetermined temporary tax deduction--perhaps for their air fare, hotel and rental car expenses--in order to encourage travel.

“This is strictly in relation to the Sept. 11 tragedy,” he said. “It’s not us trying to come in and take advantage of the situation for a political agenda.”

Marianne McInerney, executive director of the National Business Travel Assn., said that legislation to write off the full cost of business meals has to be a “bit more palatable to Congress at this time.” She favors providing the tax incentive nationwide. “The pain that is being felt is across the board,” she said.

Sen. Daniel K. Inouye (D-Hawaii), who has advocated restoring the 80% deduction for business meals, said that the proposal faces opposition “because it involves so much money.”

According to a 1999 estimate, restoring the 80% deduction for business meals would cost the Treasury $8.4 billion over 10 years.