No Ad Tax in proposed tax billposted on 11.02.2017
- Fight is far from over
The initial federal tax reform legislation unveiled last week by Texas Congressman Kevin Brady, R-Conroe, preserves the full deductibility of advertising costs in the year they’re incurred, meaning businesses would not face an Ad Tax under the new tax regime if approved. While encouraging, the tax reform plan is far from the finish line and getting there will be treacherous.
TAB has been working for years with NAB and several partners in the publishing and advertising community to avert an Ad Tax in the long-running federal tax reform effort, educating lawmakers, their staff and business leaders on the damage such a measure could wreak on the economy.
Just last month, we brought together numerous local newspaper publishers to join Houston broadcasters in urging Brady, chairman of the tax-writing Ways and Means Committee, once again to resist efforts to tax advertising.
While the initial legislation is positive from our perspective, a number of major and politically powerful industries are vehemently opposing Brady’s tax reform proposal, so broadcasters cannot rest in protecting this all-important tax deduction.
Advertising drives more than $531.5 billion in economic activity in Texas alone and helps support nearly 15 percent of all jobs in the state. The advertising deduction has been in place since the tax code was first adopted more than a century ago. It is especially essential to new business creation, as a large percentage of businesses fail in the first five years of operation.
Broadcasters are encouraged to employ the following tools NAB has developed to weigh in directly with their Members of Congress in this ongoing effort.
- Click here to thank your members of Congress for supporting broadcast stations, small businesses and local jobs by not slashing the ad tax deduction.
- Recruit advocates. Make sure your advertising partners know how a tax on advertising could harm their ability to reach customers and grow their businesses. Urge them to join Businesses Against the Ad Tax.
Questions? Contact TAB’s Oscar Rodriguez or call (512) 322-9944.
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