AAF Alert – Tax Reform Update
This post comes from an email newsletter from Clark Rector, Jr., Executive Vice President of Government Affairs at the American Advertising Federation.
House Republicans have released their comprehensive tax reform plan, the Tax Cuts and Jobs Act. The bill as introduced did not include any limitations on the deduction for advertising expenses. While this is very good news for consumers and the advertising industry, the threat is not over.
The House Ways and Means Committee will mark up the bill during the week of November 6. During that process any member of the committee could introduce an amendment to limit the advertising deduction in order to raise money for other purposes. We have no indication at this time that any member is planning on doing so.
The Senate Finance Committee is writing its own version of tax reform and scheduled to release it soon. Because this committee is writing its own bill, the advertising deduction is at risk here also.
A bi-partisan letter defending the advertising deduction has been sent to the Republican and Democratic leaders of the Senate and the Finance Committee. The letter was authored by Senators John Boozman, R-Ark. and Tammy Baldwin, D-Wisc. and signed by thirteen of their colleagues. The letter is similar to the Engel-Yoder letter sent last spring to House and Ways and Means Committee leaders signed by 241 members of the House of Representatives.
AAF’s grassroots efforts are working. Many members of the House and Ways and Means Committee cited the strong response from the advertising industry in their home districts as part of the reason advertising maintained its full deduction in the reform proposal.
The advertising industry must stay vigilant. I urge all AAF members to contact theirSenators and urge them to oppose any effort to limit the full deduction for advertising expenses. If your Senator or Representative signed either the Boozman-Baldwin orEngel-Yoder letters I encourage you to contact their offices and thank them for supporting the advertising industry. These elected officials took a stand on our industry’s behalf and their support should be acknowledged.
Thank you to everyone who has already contacted their Senators and Representatives. Please circulate this alert to other members of your company and/or local advertising federation. Keep up the good work and do not hesitate to contact me if you have any questions or comments.
The AAF Government Report is available to all members of the AAF. If you are interested in receiving an emailed copy, please email email@example.com.
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Want to get involved? Contact your Senator and get involved today.
Senator McCaskill’s contact information:
- 202.224.6154 (Washington DC Office)
- 573.651.0964 (Cape Girardeau Office).
- 555 Independence St., Room 1600, Cape Girardeau, MO. 63703
Senator Blunt’s Contact info:
- 202.224.5721 (Washington DC Office)
- 573.334.7044 (Cape Girardeau Office)