The Hoosier State Press Association last week asked publishers to contact the office of Rep. Todd Young, R-Indiana, concerning a proposal to limit the long-standing ability for businesses to deduct advertising costs as a business expense.
According to the Newspaper Association of America, House Ways and Means Committee chairman Rep. Dave Camp, R-Michigan, is considering a proposal to limit the ability of businesses to deduct the cost of advertising as an “ordinary and necessary business expense.”
This would be part of tax reform legislation aimed at reducing the corporate tax rate to 20 percent.
Young, Indiana’s 9th District congressman, is a member of the Ways and Means Committee.
Indiana newspaper professionals who contacted Young’s office have received non-committal responses – that the comments will be shared with Young and his tax counsel, Jacob Triolo.
Advertising is the lifeblood of newspapers and other media. Limiting the ability of businesses to deduct this necessary cost would reduce revenues that support the news staffing that provides vital information to communities.
According to the NAA, advertising expenditures account for $5.8 trillion in U.S. economic output and help support 19.8 million American jobs.
Increasing the cost of advertising would slow down the engine of economic activity at a time when the economy needs that engine to hum, said Kathy Mason, vice president of government affairs for NAA.
The tax code has permitted this deduction for the 100-year life of the corporate income tax.