July 9, 2009

To: AAF Members
From: Clark Rector, Executive Vice President-Government Affairs
Re: Advertising Deductibility: Please Act Now!

It is time to make your voices heard.

The Ways and Means Committee is scheduled to release it's list of revenue options for healthcare reform on Friday. We are down to the final hours that we have to convince members of the committee and others in the House of Representatives, that it would be bad policy and very harmful to media and advertising industries to impose a tax on the advertising of prescription medications. By denying the ordinary and necessary business expense deduction for this advertising, it would be the first time in history that the Congress would have targeted one form of speech and made it more expensive in order to discourage people from speaking.

Every advertising club member, every newspaper publisher, every magazine publisher, every broadcaster who calls his or her Member of Congress is critical to this effort. We only have a few hours left. Be sure that every member of Ways and Means hears our message.

Attached is a letter from the Advertising Coalition to the committee opposing the proposal. Also attached is a letter from Global Insight, an economic forecasting firm, demonstrating that revenues generated would be much less than the $37 billion forecasted by the committee.