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| Max Baucus |
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."
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