Tax Reform: Victory for Advertisers in Round One

By Ken Klein, Executive Vice President OAAA

The tax reform plan released November 2 did not touch deductibility of advertising, a first-round victory for advertisers.

“Great news,” said Dan Jaffe of the Association of National Advertisers (ANA).

The proposal, which starts in the US House, would lower corporate rates from 35 to 20 percent, and also reduce individual rates except for high-earners.

 

The advertising lobby is concerned that Congress might limit or eliminate advertising deductibility, which is treated as a business expense.

The Outdoor Advertising Association of America (OAAA) supports a broad coalition of advertisers fighting to preserve deductibility. On October 18, Insider reported on grassroots lobbying by billboard operators.

The US House Ways & Means Committee, chaired by Congressman Kevin Brady (R-TX), plans to consider the tax reform proposal next week, starting Monday. Lobbying will be intense.

“We (advertisers) have to stay vigilant,” says Jaffe, because the bill could change, causing lawmakers to re-look at existing deductions and preferences.

Billboard operators continue to make their voice heard.  In Kansas, John Lay of George Lay Signs told Senator Jerry Moran (R-KS) that deductibility is especially important for small business.

Lay was impressed by the quick response from his senator’s office:

“Wow, talk about quick response . . . I got it.  I received an e-mail from one staffer within 5 minutes, followed by a phone call from another staffer,” said Lay.

 

 


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