Tax-Reform Proposal Is Much Worse Than Ad Industry First Thought
Posted in: UncategorizedDavid Camp, the Republican chairman of the House Ways and Means Committee, is trying to pass a huge tax-reform bill. Within his plan is a provision that is a veritable disaster-in-waiting. If passed, it would devastate the advertising industry and weaken economic growth across our economy as a whole.
What is this provision? In an effort to find “ways and means” to reduce taxes for corporations by 10%, Mr. Camp is proposing we close loopholes in our tax code. Apparently, he views our entire industry as one giant loophole.
Right now, businesses can deduct expenses for advertising in the year it is spent. The IRS deems advertising as “an ordinary and necessary business expense” — which it is.