The Biggest Threat to Our Business … Hovering and Heinous
So let’s tax ourselves out of existence. I mean, really?
Formed in 1990, the Advertising Coalition is comprised of media companies and national media and advertising trade associations whose members are advertisers, advertising agencies, broadcast networks, cable operators and program networks, and newspaper and magazine publishers, according to its Web site. These companies and associations share a common objective – to protect advertising from federal government initiatives to tax or restrict the content of advertising. In 1995, there was a House proposal to use tax reform to tax advertising as an end to “corporate welfare,” in a bid to capture $25 billion in revenue. It eventually, wisely went nowhere.
Now it’s more serious. In 2013-2014, a proposal emerged in the House and Senate to impose a $169 billion tax on advertising – allowing advertisers to deduct only half their advertising costs when incurred, and spreading out the remainder over 10 years.
New Coalition-funded research, conducted independently by IHS Global Insight, shows what’s at stake: Economic activity stimulated by advertising generates 20 million of the 142 million jobs in the United States and accounts for $5.8 trillion or 16 percent of the country’s $36.7 trillion output.
Were that to go away, one can only imagine how our virtuous circle would become an unvirtuous downward spiral.
Unfortunately, the current Congress has not dismissed these ideas out of hand: that’s why it is time to get each and every Member of Congress on record now: oppose this heinous change to our tax code – and call it for what it is: a direct threat on the engine of our economy – advertising – and the commerce we create.
I am first in line as a fiscal conservative. Which leads me to say: let’s not cut the jugular of the U.S. economy in a blind aim to cut deficits!
My thanks to the American Advertising Federation for its recent ADMERICA 2015 Conference presentation on tax policy: Visit the Advertising Coalition Web site to learn more what you can do, as an individual or as a company, to get Congress to end such threatening shenanigans.