Rep. Dave Camp (R-Mich.), chairman of the House ways and means committee and the lawmaker pushing tax reform, won't seek re-election, putting one of the most powerful positions in Congress in play.
Rep. Dave Camp
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.
Broad tax reform may be a long shot in Congress, but the advertising community is still nervous about proposals to limit the advertising tax deduction.
With President Obama expected to nominate Sen. Max Baucus (D-Mont.) as the next U.S. Ambassador to China, tax reform and the proposal to limit the ad-tax deduction may have been dealt a setback. Politico first reported Baucus’ impending nomination.
Congress is winding down for the year, making it highly unlikely that any new laws will get passed; even nominations are having a tough time. There is still a question of whether the Senate, out the first week in December, will be able to vote on the nomination of Terrell McSweeny for an open slot on the Federal Trade Commission. But that doesn’t mean pols will sit on their hands.
For the first time, proposals to limit the ad tax deduction are being pushed by the two chairmen of the tax writing comittees in both the House and the Senate.
The advertising community has been on high alert over proposals in the House to limit or eliminate the advertising tax deduction. Now, all eyes are on the Senate, where Max Baucus (D-Mont.) said Tuesday he plans to release "discussion drafts aimed at closing loopholes" in the tax code by the end of the week.
Just as advertisers and media execs feared, Rep. Dave Camp (R-Mich.), chairman of the House Ways and Means committee, is proposing watering down the advertising tax deduction.
The longer the federal government shutdown drags on, the more likely that the advertising business will not only take a hit, but find itself in the crosshairs of corporate tax reform.