Dear Colleague Letter Shows Immense Support for Protecting Advertising

June 10, 2015

Yesterday, Representatives Kevin Yoder (R-KS) and Eliot Engel (D-NY) sent a Dear Colleague letter to Speaker of the House John Boehner (R-OH) and Minority Leader Nancy Pelosi (D-CA) in support of protecting the current tax deductibility of advertising. This letter is extremely significant for the advertising community. Eighty-seven bipartisan members of Congress (48 Republicans and 39 Democrats) signed the letter.

This broad bipartisan support illustrates the growing opposition in Congress to amortizing advertising. Advertising’s immediate deductibility has been an important part of the tax code for over 100 years, and changing this key tax status would create serious harm for the economy. It has been proposed that 50% of each year’s advertising expenditures would have to be expensed over 10 years. This would impose at least a $169 billion in additional taxes on the ad community. Also, millions of jobs would be at risk if the effort to sell was saddled with heavy new tax burdens.

Representatives from 36 different states from all across the country signed the Dear Colleague letter. This fact is not surprising as advertising has a significant positive economic impact on every single state and congressional district in the U.S. A study carried out by the noted economic forecasting research organization IHS Economics and Country Risk demonstrated that advertising in 2014 supported 20 million jobs and drove $5.8 trillion in economic activity. These impressive numbers can only continue to be achieved in the future by supporting the current tax deductibility of advertising.

To view the letter sent by Reps. Engel and Yoder, click here. Click here to view our press release on this issue.


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