The often feared, but rarely seen changes to tax laws that could threaten the ad industry took an actual step closer to reality Thursday, according to adage.com.
Senate Finance Committee Chairman Max Baucus dealt adland a blow by proposing to allow businesses to expense only 50% of their advertising costs in the tax year they are incurred and spread the expensing of the rest over five years.
Though the chances of actual tax legislation being passed by the current congress are slim, industry trade groups were quick to react.
"It is essential that everybody in the advertising community speak up loudly and quickly that this proposal is misguided and highly damaging," said Dan Jaffe, group exec VP-government relations for the Association of National Advertisers.
In a statement, ANA CEO Bob Liodice called the proposed changes "a major new tax liability which would increase the cost of advertising and cause a substantial disincentive for companies to spend additional advertising dollars."