Will the U.S. Actually Pass the Ad Tax?

There has been plenty of speculation that the U.S. Congress, amid a presidential election, may try to push through legislation that will make them popular amongst their constituents.

Unfortunately attacking the ad industry ranks near the top of the list.

In case you are not aware, advertising costs incurred by businesses and corporations in the United States are not taxed, because it is- and rightfully so- considered as a cost of doing business.

But now, more than a few legislators want to take that classification away. Why? We haven’t been able to find a legitimate reason. Perhaps it is due to advertising being a multi-billion dollar industry? Or perhaps it would prove to consumer advocacy groups that legislators can be “tough” on business?

Who knows the reason why, but the fact remains that the adding of this particular tax on business is not a good idea.

There are dozens of reasons why, with the biggest one being that it will hurt smaller businesses’ ability to compete. With a tax on advertising, these SMEs (small and medium-sized enterprises) have even FEWER funds to compete against the big dogs.

We agree that businesses should pay more into the tax system. And we are hoping more advertising professionals step up to the negotiation table to figure out a better alternative.