Did you know that advertising helps generate $52b (or nearly 16% of all economic activity) in Kansas? Did you know that tax reform proposals include reducing the deductibility of advertising as a business expense?
Reducing advertising deductibility would not only negatively impact the ad industry, but also the small businesses throughout the state that rely on advertising to get customers in the door. Think about your small business- if your dental or chiropractic practice could only deduct 50% of your advertising expenses, you'd probably spend less on advertising, right? This would not only lead to decline for ad and marketing agencies, but the number of people seeing your message and making appointments would decline as well.
It's because of these issues that I am involved with the American Advertising Federation. As the President of the Board for the American Advertising Federation- Topeka
, I recently attended the American Advertising Federation
event Advertising Day on the Hill where representatives from across the country gathered to learn and advocate for our shared interests.
By all measures, the event was a resounding success. We heard from very intelligent and informed people on the state of tax reform and how it might impact small businesses, as well as other hot topics within our industry.
For the kick-off evening of Ad Day on the Hill, we heard from Jeffrey Herbst of the Newseum
on The State of the First Amendment, which was enlightening especially given the current political climate. The next morning we heard from several members of Congress (Jim Renacci R-Ohio and Gus Bilirakis R-Florida) regarding tax reform as well as how and why advertising tax deductibility is on the cutting block.
That same morning, we also heard from Mary Engle of the Federal Trade Commission
on sponsored posts on social media and Mike Signorelli on the topic of privacy. (I'll write another blog post on those topics in the near future).
For Ad Day on the Hill, I met with staffers for the following members of Congress:
Some key points that I shared with them included the economic impact of advertising and the $52b it helps generate in our state. All of the staffers I met with were cognizant of this economic activity and its importance to small businesses, as well as assured me that they have small business interests in mind. These members of Congress committed to do what they could to continue the full deductibility of advertising as a business expense.
Every few years advertising deductibility comes up as a possible way to increase tax income. The American Advertising Federation is dialed in on this topic and will continue to keep members of Congress informed. Have any questions about this? Shoot me an email at email@example.com.