Alert:Healthcare Passed

December 24, 2009

To: All AAF Members
From: Clark Rector, Executive Vice President-Government Affairs
Re: Healthcare Passed – Advertising Deductibility Safe!

On Christmas Eve, after a long and protracted struggle, the U.S. Senate passed its version of healthcare reform.  The final bill as passed did not include any language denying the federal tax deductibility for the advertising of prescription drugs or any other product.

This was one of the most serious threats the advertising industry has faced in many years.  As you know from my frequent emails over the past months, this has not been an easy fight.  Limiting the deductibility of pharmaceutical advertising was discussed at virtually every step of the process, from the House Ways and Means Committee, to the Senate Finance Committee and finally through threatened amendments on the Senate floor.

The fact that the proposal was never brought to a vote is due in very large part to the outstanding grassroots response of the advertising industry.  We know from our contacts with lawmakers on both sides of the Capitol that they heard loud and clear from you and other industry professionals that limiting advertising deductibility would be a disastrous choice, both economically and politically.

We know that this idea will not go away and its proponents are likely try again in the future.  In the meantime, thanks to all of you for such an outstanding response throughout the year and congratulations on an outstanding victory.

As always, do not hesitate to contact me if you have any comments or questions.