NAB, 4A’s take on ad tax changes


NAB / National Association of BroadcastersTwo major national business organizations are taking on the folly of toying with the advertising business deduction. On top of causing immense and immediate damage to America’s media community, it will cause untold damage to the economy in general, they argue.

NAB’s Dennis Wharton issued a brief statement on the topic, and noted that he believed there is still a good possibility of heading off any such scheme.

He said, NAB and the thousands of local radio and television stations in our membership strongly oppose limits that would be placed on the ability of businesses to annually deduct costs for advertising. We’re optimistic that Congress will fully retain the ad tax deduction, which is an engine for economic growth and job creation in businesses and communities across America.”

Writing in Ad Age, 4A’s President/CEO Nancy Hill noted that taking away the deduction is the exact same thing as imposing a new tax on advertising, and it would be instantly disastrous for broadcasters, newspapers and other businesses that rely on advertising for income.

She said it could take a $446B bite out of advertising revenue and put 1.7M jobs in jeopardy.

Further, she noted that for every dollar spent on advertising, according to a 2011 HIS Global Insight study, $20 of total economic output is created. And 20M jobs are tied to advertising, accounting for 15% of the total US workforce.