The after-tax cost of a dollar of meal and entertainment expense is 80 cents for a taxpayer with a 40% marginal tax rate.

Name: The after-tax cost of a dollar of meal and entertainment expense is 80 cents for a taxpayer with a 40% marginal tax rate.
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The after-tax cost is calculated by subtracting the tax savings from the original cost. In this case, the tax savings is 40% of the cost, so the after-tax cost is 60% of the original cost, which is 80 cents on the dollar.

The After-Tax Cost of a Dollar of Meal and Entertainment