It has been a busy couple of weeks in Congress. I would like to draw your attention to an issue that I hope you would take action on before the Thanksgiving holiday.
As many of you may know, Senator Max Baucus (D-MT), Chairman of the Senate Finance Committee, released tax reform draft bills earlier this week that address many areas of potential tax reform. One particular item in the bill directly affects the promotional products industry and its operation as an effective advertising medium. The bill, if passed, would allow only 50% of advertising expenses to be deducted in the current year with the remaining 50% amortized over 5 years. Currently, advertising expenditures are 100% deductible in the year the expenditures are incurred.
It is imperative that all of us contact our Members of Congress to address this issue and ask that tax expenditures for advertising not be changed.
Many legislators still don’t fully understand that promotional products are the most cost-effective method for businesses, nonprofits and government entities to market and raise awareness of their programs. Too few elected officials know how essential promotional products are to the marketing mix, and the industry, to the national economy. Businesses should be able to deduct advertising expenses as part of their operation.
I urge you to add your voice to ours and remind your Senators and Representative in Washington, D.C. that the promotional products industry is an effective advertising resource by using this link to send an email to your Senators and Representative right now.
Take action today to protect advertising expenditures and the promotional products industry. As always, you can gain additional updates at www.ppailaw.org. Thank you for your consideration and I wish you and your family a happy Thanksgiving.