AAF Government Report

September 27, 2013

Clark Rector Jr., Executive Vice President – Government Affairs

*Please note that the full AAF Government Report is available only to registered members of the AAF.

Below is a free preview of the report, including the lead story and associated links. To view the full report, you will need to visit the AAF Membership Site. If you have forgotten or do not know your AAF password, you may request a new one here. If you need additional help, please click here.

Chairmen Start With “Blank Slate” on Tax Reform

According to sources from within the House Ways and Means Committee, limitations on the full tax deductible status of advertising continue to be actively considered as a part of potential tax reform legislation. Chairman Dave Camp, R-Mich., and other committee members are attempting to write legislation that would lower the top individual and corporate rate to as low as 28 or 25 percent. In order to do that and keep the measure revenue neutral (maintaining the same amount of tax revenue) many tax deductions and preferences must be eliminated or reduced.

Details on the form of the limitation are few. Possibilities include disallowing a portion of the deduction, amortizing a certain percentage or creating different tax treatments for brand vs. product advertising. AAF has alerted our nationwide network of grassroots members and urged them to contact members of the Ways and Means Committee to express opposition and explain the negative economic consequences of any tax on advertising.

Given the current polarization in Congress, prospects for enactment of comprehensive tax reform legislation appear to be remote. However, it is still important to keep an ad tax out of the proposal even if it does not pass, since the legislation could well become the starting point in future years.

Get the full report

AAF Government Report is available to all members of the AAF. If you are interested in receiving an e-mailed copy, please e-mail government@aaf.org

If you are interested in receiving AAF SmartBrief, an opt-in news service, please visit www.smartbrief.com/aaf. AAF SmartBrief condenses advertising industry news from dozens of media sources into a succinct, easy to read e-mail.

Go to the Government Affairs Main Page.