Threat of Ad Taxes, Restrictions on the Rise in 3 States

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WASHINGTON, D.C. A bill introduced in the Arkansas legislature would impose a nearly 7 percent tax on all advertising in the state to help raise money for education and close a $400 million budget gap.

Under the Arkansas bill introduced on Jan. 22, the sale of advertising time and space, including television, radio and newspaper advertising, would all be taxed.

“This would be a big hit for the advertising industry,” said Dan Jaffe, executive vice president of the Association of National Advertisers.




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