Limit to Ad Tax Deduction Is in Rep. Camp's Tax Reform Package

Provision has small concession for small advertisers

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Rep. Dave Camp (R-Mich.), the outgoing chairman of the House Ways and Means Committee, unveiled his tax reform package Wednesday, and the bad news for the advertising and media industries is that it includes new limits on the advertising tax deduction. As feared, Camp's proposal would cut the deduction by half in the first year with the rest amortized over 10 years.

To help out small businesses and local advertisers, Camp's draft would allow companies to expense the first million dollars of advertising, provided the total advertising budget does not exceed $2 million.

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