From classified ads to advertisements placed by large national advertisers, advertising plays an integral role in the production of newspapers. Comprising nearly 80 percent of all newspaper revenue, advertising is vitally important to the economic stability of the newspaper industry and is a critical resource in support of high-quality original journalism. Advertising also serves to educate consumers and empower them to make knowledgeable buying decisions. In fact, the American market economy relies on the flow of truthful information between producers and consumers.
NAA works to ensure that the ability to advertise is not jeopardized by legislative and regulatory attempts to place burdens on advertising in print, digital or mobile platforms. NAA is opposed to proposals that would place unfair and unconstitutional restrictions on advertising and actively works to protect commercial speech.
July 29, 2014
This paper provides newspapers with examples of what some companies in the publishing industry are doing to provide greater transparency to consumers around sponsored content. These examples provide ways in which a publisher can help the reader differentiate between native advertising and traditional editorial content.
January 30, 2014
As Senate Finance Chairman Max Baucus (D-MT) and House Ways and Means Chairman Dave Camp (R-MI) developed tax reform plans, rumors circulated all fall that both chairmen would include a provision that would change the current tax treatment of advertising as an ordinary and necessary business expense. The rumor became reality when Chairman Baucus released his “Cost Recovery and Accounting Tax Reform Discussion Draft” which proposed to limit the business deduction for advertising to 50 percent in the year the expense is incurred and to amortize the remaining 50 percent over a five-year period.
September 25, 2013
Rep. Dave Camp (R-MI), Chairman of House Ways and Means Committee, has been meeting with his Republican colleagues on the committee as he and his staff pull together tax reform legislation. NAA has learned that Chairman Camp is giving serious consideration to proposals that would limit the ability of businesses to deduct the cost of advertising as an ordinary and necessary business expense. This proposal is being considered as a way to reduce the corporate tax rate to 25 percent.
NAA is encouraging member newspapers to contact Republican members of the committee and urge them to oppose this proposal. If you are unable to reach your representative, please ask to speak with his chief of staff or tax legislative assistant.
November 13, 2012
As expected by some pundits, the Nov. 6 elections resulted in little change in Washington. President Barack Obama was re-elected, the Senate remains under Democratic control and the Republicans remain in charge of the House of Representatives.
October 04, 2011
The Federal Communications Commission held a field hearing in Arizona on Oct. 3 concerning "Information Needs of Communities: The Changing Media Landscape in a Broadband Age." Issued in June, this staff-level report outlines recommendations for strengthening news and information-gathering to meet the needs of local communities. One of the report’s recommendations calls on the federal government to consider "targeting existing federal advertising spending to local news media."
June 24, 2011
Over the years, the "ordinary and necessary" deduction for advertising costs has been viewed as a potential revenue option to pay for new federal programs. NAA has been working to maintain the current tax treatment of advertising costs.