From the News Media Alliance
The House Ways & Means Committee just released tax reform legislation that sets the stage for a tax package to move through Congress. We have heard that there is still a risk of Congress limiting the business deduction of advertising expenses to offset costs of lowering the corporate tax rate. This legislative text will soon be marked up by Committee, and the Senate is expected to consider a bill the week after.
Please contact your Congress members and tell them to leave in place the deduction for advertising tax costs as an immediately deductible “ordinary and necessary” business expense.
As the Congress considers legislation, they will seek offsets to lower the corporate tax rate. The News Media Alliance is concerned that Congress will again turn to the deduction for advertising costs. A damaging proposal was offered in the last Congress that would have changed the current tax treatment of advertising expenses; requiring advertisers to amortize 50 percent of advertising expenses over a 5-10 year period.
Why Taxing Advertising is the Wrong Policy?
Since its inception 100 years ago, the Tax Code has allowed businesses to immediately deduct 100 percent of advertising costs as an “ordinary and necessary” business expense. Advertising is no different than any other business expense such as rent, office supplies. Amortizing the deduction for advertising costs would present a total direct sales risk estimated at $353 billion with a peak loss of 1.4 million jobs. While the Alliance supports congressional efforts to reform the corporate tax structure, we are adamantly opposed to changing the tax treatment for advertising costs as it will undermine the engine that drives the US economy. Advertising continues to be the most important revenue stream to support newspaper journalism in local communities.
Please call or write your Member of Congress.
Please run this advertisement in your print and digital circulations. Click here to access the Don’t Tax Advertising ad.