GOP Tax Blueprint Released

Status of Ad Deduction Remains Unclear

The long-awaited tax reform blueprint from the “Big Six” (the Republican leaders of the House and Senate, the Chairmen of the House and Senate tax writing committees, the Treasury Secretary, and the Chair of the National Economic Council) has been released. It proposes a number of changes to the tax code on both the individual and corporate sides. Under “Competitiveness and Growth for All Job Creators,” it lays out the new tax structure for corporations and small businesses.  

Specifically, it lowers the corporate tax rate from 35% to 20%, allows for immediate expensing of depreciable assets, and preserves the research and development (R&D) credit.   

The effect on the tax deduction for advertising is not yet clear. The framework “envisions repeal of other business credits” but does not specify which provisions of the tax code will be affected.

We have significantly stepped up our lobbying efforts, as part of The Advertising Coalition, to ensure that the tax deduction for advertising is retained. These efforts will continue now that we have further detail on the path the Administration and Republicans in Congress intend to take.  

You can read more of our analysis of the framework on our Regulatory Rumblings blog.