As Congress considers comprehensive tax reform, lawmakers searching for more tax revenue may target the business advertising deduction. It could have a drastic impact on bottom lines not only for newspapers in Wisconsin, but for your advertising partners and clients.
A new coalition – Businesses Against the Ad Tax, or BAAd Tax – is making sure businesses know how this tax change could harm them and recruiting supporters to act.
What’s the Big, Bad Idea?
Right now, 100 percent of a company’s advertising expenses, both digital and traditional, are tax deductible. Congress may change this, which would make advertising costs more expensive.
This change is a tax on ad budgets, meaning businesses’ costs will increase or they will be forced to advertise less.
How Will This Affect Wisconsin Businesses?
The ad tax would be bad for Wisconsin businesses and cripple their ability to reach new consumers and grow. It would also slow job creation. Here’s why:
- Ad expenditures generate $101.1 billion — a whopping 15.9 percent of Wisconsin’s economic activity.
- Advertising helps produce 328,723 jobs in Wisconsin.
- Every $1 million spent on advertising supports 57 jobs in the state.
The time to act is now! Use the tools at www.baadtax.org to contact your members of Congress immediately and tell them cutting the ad tax deduction hurts local newspapers.
But don’t stop there – many of your advertising partners and clients may be unaware of the tax change. Make sure they know how a tax on advertising could harm their ability to reach customers and grow their businesses. Urge them to join Businesses Against the Ad Tax. The more people we have, the louder our voice will be to steer Congress in another direction.
