Inflations Impact on Tax Deductibility of Service Awards: A Case Study

The letter is addressed to Congressman Willie D. Gradison and discusses the issue of inflation and its impact on the tax system. The writer highlights a situation involving a client in Chattanooga, the Krystal Company, who has been facing increased costs for service pins and brooches for their employees due to inflation. The writer mentions that the current tax law imposes a limit on the deductibility of service awards, which has not been adjusted for inflation in almost 20 years. The writer urges Congressman Gradison to address this issue and correct the inequities in the tax system caused by fixed dollar limitations.