Advertisers applaud tax bill
Advertising interest groups are applauding the tax bill passed by both the House and Senate this week for not using advertising taxes as a "pay-for" to offset other tax cuts. Rumors had circulated that lawmakers were considering eliminating some advertising deductions as much as 50% over 10 years.
Why it matters: Eliminating some advertising deductions would have had a particularly negative impact on local media that relies heavily on small business advertising. For months, ad interest groups have also been urging lawmakers to reconsider the potential impact a potential "pay-for" tax would have on jobs and economic growth.
The Association of National Advertisers (ANA) is happy that the new bill did not disrupt a decades-long precedent:
- "For over a century, advertising has been a regular, deductible business expense under the U.S. tax code. Businesses of every size and scope rely on advertising as a critical ingredient for driving sales, and the American economy relies on it for growth, says Dan Jaffe, Group Executive Vice President of Government Relations for the ANA.
- "The deductibility of advertising costs has been under serious attack for several years in the Congress. Preserving our tax treatment in the context of tax reform is a major victory for the entire marketing community."
The National Association of Broadcasters (NAB) is relieved that the tax code won't put local publishers out of business:
- "Local TV and radio stations and our network broadcast partners salute leaders of Congress for recognizing the importance of advertising as a principal driver of commerce by preserving the full and immediate deductibility of advertising expenses." — NAB President and CEO Gordon Smith: