Study: Tax-Reform Proposals Would Put 1.7 Million Jobs at Risk
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Facing a threat from Capitol Hill that would hurt the ability of businesses to deduct advertising expenses, the Association of National Advertisers released a study that says the move would badly hurt the U.S. economy.
The study, conducted by IHS Global Insight, said that by 2017 advertising will directly and indirectly foster $6.5 trillion in U.S. economic activity and help support 22.1 million U.S. jobs. It also found that each dollar spent on advertising expenses generates nearly $22 of economic output.
The study is a response to two proposals aimed at cutting the overall corporate tax rate. Senate Finance Committee Chairman Max Baucus, D-Mont., and House Ways and Means Committee Chairman David Camp, R-Mich., have each proposed allowing businesses to deduct only 50 percent of their advertising expenses in a tax year and require the balance to be amortized over five years (Senate plan) or 10 years (House plan.)
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