Report: Ad Tax Still In Play

The advertising tax deduction is still in play as part of comprehensive tax reform. But this round, it’s only one of six options for squeezing more tax dollars out of the business community, according to Kathryn Bachman from her Katy On The Hill blog.

The six options were offered in the business income tax report, one of five bipartisan reports produced by working groups on the Senate finance committee. Sens. John Thune (R-S.D.) and Benjamin Cardin (D-Md.) headed up the business tax working group.

The report recognizes that there are business and economic implication connected with each of the options. But the report also notes that amortizing advertising expenditures would result in additional tax revenue for the federal government of $169 billion over 10 years – a juicy number that’s hard to ignore.

Bachman notes it’s not clear that any of the options will become actual proposals, but Dan Jaffe, executive vice president of the Association of National Advertisers, said it is still important for advertisers to keep the pressure on lawmakers.

“Making advertising more expensive would undermine a leading engine of the economy. Our data shows in every congressional district, advertising is a major source of jobs and major source of economic activity. We’re 19 percent of the GDP in the US,” Jaffe said.

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