Sen. Max Baucus Proposes Cut To Advertising Deduction
November 21, 2013 at 3:15 PM (PT)
The battle over the proposal to eliminate tax breaks for businesses who buy advertising has escalated with Senate Finance Committee Chairman MAX BAUCUS (D-MT)'s release of a third package of tax code overhauls.
The changes include the reduction of the deduction for advertising costs from the full amount to 50% in the year incurred and the rest amortized over five years, following House Ways and Means Committee Chairman DAVE CAMP (R-MI)'s recent proposal that amortizes half of the expense over 10 years. The changes are opposed by the advertising and broadcasting industries, who fear that they will discourage businesses from spending on marketing.
NAB EVP DENNIS WHARTON said, "NAB and the thousands of local radio and television stations in our membership strongly oppose limits that would be placed on the ability of businesses to annually deduct costs for advertising. We’re optimistic that Congress will fully retain the ad tax deduction, which is an engine for economic growth and job creation in businesses and communities across AMERICA."