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NMA and NNA: Stop congress from taxing advertising

The House Ways & Means Committee just released tax reform legislation that sets the stage for a tax package to move through Congress. We have heard that there is still a risk of Congress limiting the business deduction of advertising expenses to offset costs of lowering the corporate tax rate. This legislative text will soon be marked up by Committee, and the Senate is expected to consider a bill the week after.

Please act nowClick here to contact your legislator and tell them to leave in place the deduction for advertising tax costs as an immediately deductible “ordinary and necessary” business expense.

We also urge members to run an advertisementClick here to access the ad. This will inform readers that Congress is considering limiting the ad deduction, which will impact their local community, jobs, and economy. You can customize the box at the bottom with your newspaper’s offering, logo and/or contact information.

As the Congress considers legislation, they will seek offsets to lower the corporate tax rate. The Alliance is concerned that Congress will again turn to the deduction for advertising costs. A damaging proposal was offered in the last Congress that would have changed the current tax treatment of advertising expenses; requiring advertisers to amortize 50 percent of advertising expenses over a 5-10 year period.

Why Taxing Advertising is the Wrong Policy?

Since its inception 100 years ago, the Tax Code has allowed businesses to immediately deduct 100 percent of advertising costs as an “ordinary and necessary” business expense. Advertising is no different than any other business expense such as rent, office supplies. Amortizing the deduction for advertising costs would present a total direct sales risk estimated at $353 billion with a peak loss of 1.4 million jobs. While the Alliance supports congressional efforts to reform the corporate tax structure, we are adamantly opposed to changing the tax treatment for advertising costs as it will undermine the engine that drives the US economy. Advertising continues to be the most important revenue stream to support newspaper journalism in local communities.

Please call or write your Member of Congress. Click here to contact your legislator.

Please run this advertisement in your print and digital circulations. Click here to access the ad.

Visit our website for additional talking points or contact News Media Alliance with any questions.