CCH Tax Day Report
Over 100 bipartisan House lawmakers are urging their leadership to leave in place the deduction under the tax code for advertising expenses as necessary and ordinary business expenses. The 115th Congress holds the promise of business tax reform, but the current tax treatment of advertising expenses should remain untouched, according to the lawmakers.
Advertising has been given the same tax treatment as all other regularly occurring business expenses throughout the 114-year life of the tax code, the lawmakers noted. “Any measure that would tax advertising [by restricting the deduction]—and therefore would make it more expensive—cannot be justified as a matter of tax or economic policy,” the lawmakers wrote. “Such a proposal would run counter to a major goal of tax reform agreed upon by virtually all policymakers: to simplify the tax code,” they added.
Reps. Kevin Yoder, R-Kan., and Elliot Engel, D-N.Y., lead the letter with over 100 other lawmakers’ signatures. The letter was sent to House Speaker Paul Ryan, R-Wis., and Minority Leader Nancy Pelosi, D-Calif.
House Ways and Means Chairman Kevin Brady, R-Tex., told reporters on May 16 that he is hopeful that, as tax reform discussions continue, a revenue raiser, such as limiting the advertising deduction, will not have to be considered. Brady confirmed that the House GOP tax reform “Blueprint,” from which House taxwriters are currently drafting legislation, does not alter the current tax treatment of advertising.
By Jessica Jeane, Wolters Kluwer News Staff
Letter from Lawmakers to House Leaders Regarding Advertising Deduction