Advertising Age published an editorial by 4As President-CEO Nancy Hill regarding Congress potentially passing a tax provision or bill that would alter the long-held deduction of advertising costs. The trade publication also ran a story featuring other industry wonks bemoaning the possible “ad tax” creation.
Hill wrote, “We must bring the full power of our collective voices to the opposition. If you haven’t already, contact your members of Congress and let them know that what we do is essential to the businesses in their districts and in the nation as a whole. General tax reform may a worthy goal, but changing the advertising deduction is not the path to take.”
“It is essential that everybody in the advertising community speak up loudly and quickly that this proposal is misguided and highly damaging,” implored ANA Group Exec VP-Government Relations Dan Jaffe. ANA CEO Bob Liodice chipped in that “a major new tax liability which would increase the cost of advertising and cause a substantial disincentive for companies to spend additional advertising dollars.”
Let’s hope the battle cry is more effective this time versus the 2009 bullshit attempt at building an army to advance industry diversity.
Then again, let’s not.
Hill added, “Changing or removing the advertising deduction is also contrary to more than 100 years of business history.” Hey, that’s roughly the same amount of time that our industry has dragged its feet on reforming discriminatory hiring practices. Liodice would have to grudgingly admit to it as well. Additionally, Publicis Groupe Overlord Maurice Lévy gushed over the election of Barack Obama in 2009; hence, you’d think he would support the president’s tax reform proposals.
But seriously, why should a field that thrives on exclusivity also enjoy special monetary benefits? Hell, Congress shouldn’t just stop at instituting the “ad tax” on Madison Avenue. Legislators should launch a “diversity tax” too, fining advertising agencies for failing to integrate their ranks.
Now that’s an idea worth rallying around.