Services: Embarrassment Is Wonderful

Aside from the U.S. Treasury, the only group that stands to profit from the Internal Revenue Service's new ruling on expense account spending is the nation's credit card companies. Already a $425 million-a-year business, the card companies—led by Diners' Club. American Express, and Carte Blanche—hope to grow still bigger by trading on an unusual commodity: embarrassment. Since IRS Commissioner Mortimer Caplin has ruled that expense account items for entertainment costing $25 or more must be substantiated, they are counting on businessmen to avoid the unpleasantness of asking for a receipt in front of guests by flashing a credit...

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