Monthly Archives: February 2014

***This Is Not A Test*** Take Action NOW!

Earlier today, Chairman Dave Camp (R-MI) of the House Ways and Means Committee released his proposal for tax reform. Among many items that address corporate and personal taxes is one section that would directly affect the promotional products industry.

Camp has proposed a plan for amortization of advertising expenses, a move that follows former Sen. Max Baucus’ who released a discussion draft late last year that would allow businesses to expense only half of their advertising costs in a given year and amortize the remaining half over time.

In a press conference earlier today, Camp said that in order for corporate tax rates to be lowered, the amortization for advertising expenses must be one trade-off. Camp’s plan would create an amortization schedule over a 10-year period; 80 percent of advertising would be deductible in the first year, then 70 percent and on, down to the 50 percent number. Until now, businesses have been allowed to deduct 100 percent of their advertising costs in the year they are incurred.

This is a harmful plan for anyone in the advertising business. We as advertising industry professionals need to take action to help educate Congress about why the advertising deduction is necessary and why it must not be changed.

You can add your voice to ours and tell Congress this is not an acceptable “trade-off” and the deductibility of advertising must remain as it is today.

TAKE ACTION NOW!

Delivering Confidence & Meeting Customer Expectations

A Special Message to PPAI Exhibitors, Advertisers, Sponsors

At The PPAI Expo 2014, held January 13-17, we introduced the Product Safety Awareness Program. Developed by the Product Responsibility Advisory Group (PRAG), the program is designed to foster an industry-wide commitment and a culture where companies like yours are not only aware of product safety but are also engaged in the discussion—a discussion we believe will lead to confidence across every level in our channel.

Over the past several years, PPAI has become a respected leader in the product safety arena. We began this journey by providing hundreds of industry companies with timely and relevant product safety education courses through our professional development programs. We’ve established relationships with product safety agencies. And, we’ve made it a priority. While we are proud of our efforts, we feel we’ve only taken the initial steps in tackling this complex issue. Now we are upping the ante.

The program requires every member company wanting to gain access to the PPAI marketplace (exhibiting at a PPAI event, advertising in a PPAI publication, and/or sponsoring PPAI in any way) – regardless of membership category – to designate a Product Safety Ambassador who must complete a minimum of 4 hours of product safety education no later than the start of Expo East 2015 in Atlantic City. It’s that simple.

For PPAI, this initiative is one important part of a larger Pathway to Confidence initiative that also focuses on creating awareness and promoting the PPAI Product Safety Awareness Programeffectiveness of promotional products. But most important, we want to help you by giving promotional products buyers confidence not only in the power of the medium but in its safety. You’ve heard our mantra before, Visibility, Viability, Credibility and Community. This is the next step – Commitment, Culture and Confidence. We cannot have one without the other. Our customers say so.

Obviously a topic of this magnitude has more detail, so I invite you to take a look at the Product Safety Aware Program FAQs. For more information, visit www.ppai.org. I strongly believe this program will make a strong and bold statement both to and on behalf of our membership and the industry.

Please contact me directly with questions or concerns at PaulB@ppai.org or call 972-258-3050.

I look forward to your continued support and participation.

Paul