Maloney Bill to Deny Business Deductions for Funds Spent at Discriminatory Clubs

I am joined by my distinguished colleagues, Representative BRAD SHERMAN from California, Representative LOUISE SLAUGHTER from New York, and my friend, Martha Burk -- all tireless workers in the fight for equality. As a matter of fact, in the early '90s Mr. SHERMAN, as a member of the California tax board, implemented this same type of legislation. Since then, other States, like Colorado and Kentucky, have followed.

Right now, conventions and meetings come right off corporate income tax as legitimate business deductions, including those held at private clubs that discriminate. Half the price of a business lunch is deductible. But if you're a woman, you subsidize one-half a guy's lunch with your taxes, even though you can't join the club.

The whole point is that members of these clubs get financial gains -- either indirectly through career opportunities and board appointments, or directly through tax deductions. Women can't get these same financial gains -- just because they're women. Golf is so ingrained as a part of business success that business schools teach students how to make the most of club memberships -- the PGA even sponsors a program called "Golf: For Business and Life" to do just that. But, if you're a woman and you can't get a membership, you can't play golf or get the same elite club bonus package from your employer that your male counterparts can, you're clearly missing out. Men get the membership, the deal, the deduction, and women get the bill.

This bill ends deductions for advertising, travel, accommodation, and meals associated with these clubs. And it requires discriminatory clubs to print right on their receipts, "not tax deductible".

When I went with Martha in April to protest male-only membership at Augusta National Golf Club, it was obvious that this legislation was the next logical step. Money talks. At Augusta, at least 10 major corporations, including IBM, Lucent and American Express either withdrew or cut back spending on advertising and corporate hospitality. But all the while these same companies are reaching out to sell their products to women.

Mr. Sherman and I have asked the U.S. Chamber of Commerce to support this legislation. We're looking forward to their response. Frankly, who in this day and age can object to ending government subsidized sex discrimination?

I like big business, but women must have a seat at the table -- the board table. Legitimate tax deductions should continue, but when these deductions support clubs that bar women from becoming equal partners, equal players, equal earners -- they are not legitimate. This bill is past due and the time for discrimination is over.