TAC Responds to Hearing on Camp’s Tax Plan
In response to a hearing held on Wednesday, July 30th by the House Ways & Means Committee’s Subcommittee on Select Revenue Measures, the ANA, as a part of The Advertising Coalition (TAC), has submitted a statement to be included in the record for that hearing. The hearing was on the macroeconomic impact of the Tax Reform Act of 2014 discussion draft, which was crafted by Ways & Means Committee Chairman Dave Camp (MI-4). In this discussion draft, Chairman Camp proposed amortizing 50% of advertising expenses over a period of 10 years, radically breaking from the way businesses have historically been able to deduct the full cost of advertising on an annual basis. Curtis Dubay, a research fellow at the Heritage Foundation, testified during the hearing that the amortization proposal would increase the cost of capital and ultimately be a drag on the economy. In TAC’s statement, the Coalition urges the Committee to remove the proposed limits on the tax deductibility of advertising as it moves forward on the tax reform package.