Congressional Support to Maintain Tax Deductibility for Advertising

Over 100 members of Congress have voiced their opposition to changes in the tax deductibility treatment of advertising as expenses. The legislators sent a letter to House Speaker Paul Ryan (R-WI) and Minority Leader Nancy Pelosi (D-CA), with Reps. Kevin Yoder (R-KS) and Eliot Engel (D-NY) as leading signatories, asking that they “maintain the current tax treatment of advertising as a fully and immediately deductible business expense.”

The letter asserts that any “measure that would tax advertising – and therefore would make it more expensive – cannot be justified as a matter of tax or economic policy…. Advertising has been accorded the same treatment as all other regularly occurring business expenses, such as employee wages, rent, utilities and office supplies, throughout the 114-year life of the tax code.”

NAB President/CEO Gordon Smith said, “The National Association of Broadcasters thanks Representatives Yoder and Engel and the bipartisan group of 124 House members who have signaled strong opposition to a job-killing tax on advertising. Across America, advertising is an engine for economic growth that creates and supports millions of high-paying jobs. Advertising on local radio and TV stations and broadcast networks supports popular entertainment and provides listeners and viewers with trusted sources of news. In order to sustain our nation’s economic recovery and growth, it is imperative that tax laws continue to allow advertising expenses to be fully and immediately deductible.”

“We are grateful that so many Representatives in Congress have joined in this letter to acknowledge the important role advertising performs in our marketplace today,” said The Advertising Coalition Executive Director Jim Davidson. “Advertising does so much more than sell goods and services. It keeps our radio stations, newspapers, websites, television and cable broadcasts running and provides open access to information.”

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