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.
Sen. Max Baucus
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.
For the first time, the 4A's board of directors, execs from the nation's largest advertising agencies, have gone on record opposing the Senate proposal to limit the advertising tax deduction.
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.
There is more reason than ever for the advertising and media industries to keep a closer eye on Washington these days now that Sen. Max Baucus (D-Mont.) has announced he will retire in 2014. The powerful chairman of the Senate Finance Committee has made it all too clear that he sees tax reform as a top priority.