September 26th, 2013
Uh, Oh: Advertising Tax Deduction Is Back in Play
By Katy Bachman
While the industry was celebrating Advertising Week in New York, 250 miles south in the nation’s capitol, Congress was mulling its perennial plot to remove the standard tax deduction for advertising expenses.
It’s the industry’s worst nightmare. A repeal of the ad tax deduction is back in play, and could add hundreds of millions of dollars to marketers’ tax bills, crimp ad expenditures on media and reduce revenue for ad-supported media.
The dreaded measure, being talked about in the House Ways and Means Committee, could show up as part of either the continuing resolution to fund the government or in the bill to raise the debt limit. Rep. Dave Camp (R-Mich.), chairman of the committee, has made tax reform a priority and proposed to link tax reform to the debt ceiling, or in legislation this fall. “We’re starting to see the strongest signal we’ve seen in years,” said Dan Jaffe, evp of the Association of National Advertisers. “We’ve been told by House staff that they are seriously looking at some limitation on the deduction, but they haven’t told us all the details.”