U.S. Conference of Mayors Report Highlights Declining Tax Revenues and Slowing Growth
Foreclosure Crisis Forecast to Squeeze State Budgets
The U.S. Conference of Mayors has released an economic impact report which forecasts sharp gross domestic product losses as a result of the ongoing foreclosure crisis. Specifically, the report projects economic output losses for 361 metro areas equaling $166 billion, and the mortgage crisis will result in 524,000 fewer jobs being created and $6.6 billion in lost tax revenues. The report stops short of forecasting a recession, but predicts that economic growth will dip below 2% in a number of metropolitan areas.
This has the potential to affect a number of states as falling tax revenues lead to tighter budgets. In recent economic downturns, a number of states turned to tax increases, including taxes on advertising, to raise revenue. With the grim outlook for 2008, there is a high probability that advertising will again be on the list of potential targets.
ANA has been successful in defeating nearly all of these state advertising tax proposals. Of course, we will be on guard for such proposals as state legislatures return in January for their 2008 sessions. It has the potential to be a very challenging year if these forecasts hold true.
If you have any questions, you can reach Dan Jaffe (firstname.lastname@example.org) or Keith Scarborough (email@example.com) in ANA's Washington office or call them at 202-296-1883.
ANA's Washington, DC office works to protect the ability of all marketers to communicate effectively with consumers. The scope of legislation, regulations, and court cases impacting the marketing community continues to be extremely broad, extending to issues as diverse as online privacy, prescription drug advertising, restrictions on the tax deductibility of advertising costs and the regulatory powers of the Federal Trade Commission.
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ANA's Washington, DC office plays a leading role in protecting the ability of all marketers to communicate effectively with consumers. At the end of each year, we prepare a Compendium which describes our efforts on the broad range of issues we have faced.
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Alliance for Family Entertainment
The ANA Alliance for Family Entertainment is a group of major national advertisers, supported by the Association of National Advertisers dedicated to finding, nurturing, developing and supporting family friendly programming.
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ANA and the American Association of Advertising Agencies (4A’s) conduct broadcast talent negotiations with the Screen Actors Guild (SAG) and the American Federation of Television and Radio Artists (AFTRA) through the Joint Policy Committee, or JPC.
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