Congressman Looks To Cut Advertising Tax Deduction
November 12, 2013 at 7:26 AM (PT)
ADAGE reports, "Rep. DAVE CAMP (R-MI), chairman of the House Ways and Means committee, is proposing watering down the advertising tax deduction. Multiple sources have told advertising and media lobbyists that the measure, which could cost advertisers millions and reduce revenue for ad-supported media, has been written into a working draft of a tax reform bill."
The move could hurt radio and other ad-supported media outlets, as it would cut the deduction to only 50% of all ad expenses in the first year for advertsiers, leaving them less to spend overall.
The report says CAMP expects the tax reform bill will be introduced and clear the committee by the end of the year.
"We take this more seriously than any other threat we've seen in many years. It's a sweeping proposal," said ASSOCIATION OF NATIONAL ADVERTISERS EVP DAN JAFFE to ADAGE.