***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!

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