You’ve probably been reading a lot about the upheaval happening across Washington as the new administration and congress begin to take action. You may even be inspired to become more politically-involved in your community by fighting for what you care about most. However far left, right, or somewhere in the middle you fall, it’s important to know how you, as an advertising professional, will be directly affected.
Currently businesses are able to write off all advertising expenses on their taxes as necessary costs for investing in growth and promotion of commerce. This tax cut is key to keeping the overhead costs of advertising down. A tax repeal proposal drafted by former chairman of the House Ways and Means Committee, Dave Camp, is aiming to reduce the maximum corporate tax rate from 35% to 25%. In order to help offset the loss in tax revenue, the proposal is looking to cut tax reductions on advertising. Businesses and advertisers would be expected to absorb 50% of the total costs of advertising expenses. The other 50% would be amortized over a period of 10 years.
Advertising is the engine of our economy. Not only does it make it easier to inform consumers about products and services, it helps fund the media industry that provides our entertainment, news, and sports. Nearly 15% of all jobs in Texas are produced by advertising, resulting in over $530 billion of economic activity. Burdening the advertising industry with higher taxes will stunt the proliferation of sales and jobs. Expert economists have even scrutinized the proposal as the decrease in corporate taxes wouldn’t help offset the increased costs of advertising.
The most important action you can take now is to write your congressmen about how important advertising is to your local economy. Emphasize that you’re an advertising professional and the continued growth of your industry relies on not repealing the tax cuts. Your letter doesn’t have to be long and should be in your own words, but we need to have a unified voice if we’re going to make a difference. Find out who your senator and representative is by clicking the respective links for their addresses.
Ad2Dallas and the American Advertising Federation encourage you to be part of this grassroots movement to protect our industry. If you have any questions about how to make a difference, please reach out to us at email@example.com.