The already troubled advertising industry may face a powerful new foe in the Clinton Administration, according to Roy Bostock, chairman/ceo of D’Arcy Masius Benton & Bowles and the incoming chairman of the 4A’s.
Given the new Democratic administration’s brief performance, Bostock warned last week that Clinton might move to curb the deductibility of advertising as a business expense, encourage the Federal Trade Commission to take a more regulatory posture and even attempt to levy taxes on advertising.
‘This administration needs to be watched,’ he said. ‘There is a profoundly different political philosophy now in Washington than over the last 12 years.’
As an example, Bostock noted that the Clinton team has alreay moved to limit the deductions of entertainment expenses for business. Calling this a ‘slap in the face’ to business, he said that an attack on the deduction of advertising expenditures as a legitimate business expense could be the next step for the new administration.
Copyright Adweek L.P. (1993)