The United States Congress and the White House are expected to release a federal tax reform proposal in the next few weeks. Members of the House and Senate tax-writing committees are currently working to determine how to pay for the bill.
Advertising is at great risk. In a meeting this week with representatives of the ad industry a senior tax advisor to a member of the Senate leadership told us that advertising “is on the chopping block for sure” and may be close to a “done deal.”
The House version of the last comprehensive tax reform proposal in 2014 would have created at $169 billion tax on advertising over 10 years. It looks as if Congress and the Trump Administration may be going down that road again.
It is vital that you and other members of your company contact your Senators and Representative and urge them to oppose any effort to place a tax on advertising by reducing the amount of advertising a business may claim as a normal and necessary business expense.
You can find contact information for your Senators here and Representatives here.
According to studies designed by a Nobel winning economist a tax on advertising must be opposed because:
• Advertising is the engine of the U.S. economy and generates $5.8 trillion in economic activity
• Advertising supports 20 million American jobs
• Every $1 million spent on advertising supports 67 jobs across American industries
• Every advertising job supports 34 jobs across other industries.
I urge you to contact your Senators and Representatives as soon as possible. Please let me know if you have any questions and I would appreciate a report on any responses you may get.
Thank you for your support of the advertising industry.