Senate Finance Committee Requesting Comments on Tax Reform

March 12, 2015

The Senate Finance Committee is requesting ideas on how to fix the nation’s broken tax code to make it simpler, fairer, and more efficient. In a statement released Wednesday, Chairman Orrin Hatch (R-UT) and Ranking Member Ron Wyden (D-OR) said, “By opening up our bipartisan working groups to public input, we hope to gain a greater understanding of how tax policy affects individuals, businesses, and civic groups across our nation. In doing so, we will also equip our working groups with valuable input, and we hope these suggestions will help guide the groups through the arduous task of putting forth substantive ideas to reform the tax code in each of their areas.”

The Finance Committee’s goal is to obtain additional input, data, and information for the bipartisan tax working groups, which are currently analyzing existing tax law and examining policy trade-offs and available reform options within each group’s designated area. The five working groups include: Individual Income Tax, Business Income Tax, Savings & Investment, International Tax, and Community Development & Infrastructure. Interested parties can email suggestions to each group at the email addresses provided on the Committee website. Submissions will be accepted through April 15, 2015, and made public at a later date.

ANA will be sending comments to the Business Income Tax working group to highlight the importance of protecting the full tax deductibility of advertising in the tax reform process. Proposals have been put forward to dramatically change the present ad deduction approach, which allows advertisers to write off 100% of their ad expenditures in the year in which they are made. In its place, these proposals would require that 50% of advertising expenditures be written off over either 5 or 10 years, potentially costing the ad community at least $169 billion in additional taxes over a 10 year period. Amortizing advertising unfortunately would only serve to hurt businesses trying to stimulate the economy and provide jobs for hardworking Americans. We look forward to working with the Senate Finance Committee and Congress as a whole to find a tax reform solution that works for everyone and continues to spur economic investment by businesses in our country.

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