February 26th, 2014

It's Official: Camp's Tax Proposal Would Limit Expensing of Ad Costs

By Ana Radelat
Ad Age

Congressman Notes Law Is Unlikely to Be Taken Up This Year

In his long-awaited plan to overhaul the federal tax code, House Ways and Means Committee Chairman David Camp offered advertisers and the advertising industry a $1 million loophole to his proposal to limit the expensing of advertising costs.
But Mr. Camp’s tax plan was greeted with dismay by those who buy and sell ads.

“This is a dreadful idea,” said Dick O’Brien, a top lobbyist for the American Association of Advertising Agencies. “What he’s doing will make advertising more expensive.” Mr. Camp’s plan would limit the expensing of advertising costs to 50% the first year with the amortization of the rest over 10 years. But the Michigan Republican said he’d be willing to exempt the first $1 million in ad expenses.

Read more: http://adage.com/article/cmo-strategy/industry-happy-part-tax-reform-tradeoff/291887/

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