#senators | KRG Hospitality

March 29, 2023by David Klemt David Klemt No Comments

What’s Up with the Restaurant Tax Credit?

What’s up with the Restaurant Revitalization Tax Credit?

by David Klemt

If you’re wondering what’s going on with the Restaurant Revitalization Tax Credit bills in the House and Senate, you’re probably not alone.

And if you find yourself wondering about them, that’s likely because there isn’t much news about the bills. Unfortunately, it appears that no meaningful progress has been made on HR 9574 or S.5219.

A quick check shows that both bills share the same status: Introduced. As for the House bill, HR 9574, that was introduced on December 15, 2022 by Representative Earl Blumenauer (D-OR). The Senate bill, S.5219, was introduced by Senator Benjamin Cardin (D-MD) on December 8, 2022.

It’s important to note that Sens. Cardin, Patty Murray (D-A), and Sherrod Brown (D-OH) reintroduced S.5219 in January of this year. However, that apparently didn’t mean much as the Congress.gov trackers show no progress.

Last year, some opined that neither bill would receive a vote until January 2023 at the earliest. That “prediction” has proven true, of course—it’s now the end of March.

Restaurant Revitalization Tax Credit Act Summary

Let’s take a quick look at HR 9574 and S.5219.

Both bills propose a $25,000 payroll offset for restaurants. Eligibility requirements are also identical: applicants must have applied for but not awarded a Restaurant Revitalization Fund grant.

Additional, eligible applicants are:

restaurants with operating losses of at least 30 percent in 2020 and 2021 in comparison to 2019; or
restaurants with losses of at least 50 percent in either 2020 or 2021 in comparison to 2019.

So, those are elements that both the Senate and House bills share. What about the differences between the two bills?

Mainly, differences come down to the number of employees. For S.5219, restaurants with ten employees or fewer could be eligible for the maximum payroll tax credit. That credit, as a reminder, is up to $25,000 for 2023. For every employee over ten, the refund cap drops by $2,500.

Now, HR 9574. Restaurants with ten or fewer employees would receive the full $25,000 payroll tax offset. For restaurants with between 11 and 20 employees, the offset would be “partially refundable.”

Now What?

If you believe that you’re eligible for this tax credit, it’s time to let your representatives know you want them to act.

To make things simple for everyone, I’m including the links you need to find and contact senators and representatives.

For senators, click here. And for representatives, click here.

Let them know that it’s time for action on S.5219 and HR 9574. And let them know exactly what action you expect them to take.

Image: Karolina Grabowska on Pexels

October 28, 2022by David Klemt David Klemt No Comments

Credit Card Competition Act, Take Two

Credit Card Competition Act, Take Two

by David Klemt

As we approach Election Day on November 8, it’s important to keep in mind that the Credit Card Competition Act of 2022 is still in play.

In fact, reports predict that another attempt to pass the bipartisan bill will take place in November. If reports are accurate, Senators Dick Durbin (D-IL) and Roger Marshall (R-KS) will try to include the bill in the National Defense Authorization Act (NDAA).

Now, that sentence and strategy may have you scratching your head. What, you may be asking yourself, do credit card fees have to do with defense spending?

Well, not much, truthfully. But you’re probably well aware that politicians will try to amend bills in bids to pass legislation they want. The common term for such a provision is “rider.”

It’s not difficult to understand why the Credit Card Competition Act has gone nowhere when we view Sens. Durbin and Marshall’s rider tactic.

Earlier this month, the senators attempted to include their bill within the NDAA. The reason is simple: the bill specifies the US Department of Defense’s (DoD) budget and expenditures each year. In other words, this is a “must-pass” bill.

However, Sens. Durbin and Marshall aren’t the only senators sponsoring bills. And they’re certainly not the only senators attempting to attach riders to the NDAA.

“It’s a bold strategy, Cotton.”

I will say, at least Sen. Durbin’s effort to attach the Credit Card Competition Act rider to the NDAA is somewhat related to the DoD.

You see, he and Sen. Marshall tried to tack on two amendments to push their bill through. The first amendment theorizes that veterans are being hurt by credit card fees. According to the senators, when military veterans make purchases at a military commissary, they are sometimes subjected to surcharges related to merchant interchange fees.

The second amendment brings the US Treasury Department and US Defense Department into the mix. This effort directs the departments to research just how much veterans are paying (annually, one would assume) in surcharges, and which companies these fees benefit. Then, the departments are to issue this report to Congress.

So, hey, points for attempting to make including the Credit Card Competition Act of 2022 relate to the NDAA for FY 2022. Of course, other senators are attempting to include their own riders. Should reporting prove accurate, some 900 amendments have been proposed. Supposedly, a few dozen might just make it.

This strategy didn’t work this month because the NDAA vote isn’t taking place in October. Instead, the plan is for the vote to take place sometime mid-November, when the US Senate reconvenes.

To learn more about the Credit Card Act of 2022, click here. If it’s a bill you support, let your elected officials know. Should you oppose the bill, let that be known to lawmakers as well.

Image: CardMapr.nl on Unsplash

Restaurant and bar with exterior windows open

June 28, 2022by David Klemt David Klemt No Comments

What Politicians Get Wrong about Us

What Politicians Get Wrong about Our Industry

by David Klemt

It still stings that the 43 senators chose to vote against replenishing the Restaurant Revitalization Fund.

The fact that four senators didn’t vote at all on S.4008 is nearly as insulting and painful.

Now, while all the “nay” votes came from Republican senators, I’m not here to bash one party in particular. Four Republicans voted “yea,” as did two Independents.

Unfortunately, given how hostile Democrats and Republicans in Congress seem to be, it’s difficult to be objective. Right now, it appears that the RRF was left to die a slow death because many—not all, of course—Republicans in power don’t want their Democrat peers to “win” at anything.

To be used as political pawns and be left out in the cold… It’s a bitter pill to swallow.

Cornerstones

Too many politicians, it seems, view restaurants and bars as they would other types of businesses. Perhaps the perceived success of national and global brands paint the picture that independent venues and small chains don’t need any help.

More disappointingly, maybe politicians, from local lawmakers to state representatives, take our business’ role for granted.

Look at the history of restaurants and bars, of hospitality. Think about the rich history of hospitality in America alone, let alone globally.

Yes, independent restaurants and bars are small businesses. But like so many small businesses in so many towns across the country, they’re so much more.

Restaurants and bars are pillars, cornerstones of the communities they serve. These are businesses that welcome people in, treat them like family. They’re there for them as they move through their lives.

People who were seemingly at odds with another routinely found common ground over a bite and a sip. More often than not, that’s still the case.

Operators and their teams give back to their communities through food drives, quietly feeding those in need, and finding other ways to give back.

And they look out for their communities.

Lifesavers

Last week, the team at a cafe in the Bronx called the Chipper Truck helped rescue a woman from an alleged hostage situation.

Permitted by her assailant to place a food order via Grubub, the victim thought quickly and sent a life-saving note with her order:

“Please call the police… don’t make it obvious.”

A staff member read the note in the “additional instructions” section of the order and called one of the owners. Nobody at the Chipper Truck knew if the situation was real but they chose to err on the side of caution.

When the alleged assailant—who was arrested and charged with a list of serious offenses—opened the door for the Grubhub order, he was met with police officers.

A Facebook post from the cafe addressing the situation read, in part, “I’ve often heard of this happening but never thought it would happen to us. Thankfully we were open and able to help her.”

It’s terrifying that this happens enough that the cafe owners hear about it “often.” But it’s telling of the role restaurants and bars play in their communities that they’ve saved multiple lives.

This is to say nothing of the restaurants and bars that have put coded safety systems in place to help patrons who find themselves in danger.

No Such Thing as “Just” a Restaurant or Bar

There isn’t a restaurant or bar out there that’s “only” a restaurant or “only” a bar.

Every one is a source for food, for socializing, for an escape from the stresses of life. Restaurants and bars are committed to service and sacrifice.

They’re pillars of their communities, the cornerstones that play important roles in our everyday lives and the special moments as well.

Perhaps our politicians, local and otherwise, need to a reminder. Restaurants and bars play crucial roles in the lives of the people politicians are supposed to represent.

Too many politicians claim to support small businesses while their actions and votes prove otherwise. Talk, as we all know, is cheap.

Restaurants are not “just” restaurants. Bars are not “just” bars. We deserve better.

Image: Scott Webb on Unsplash