Preserving the Deduction for Advertising Expenses

Advertising is a cost of doing business, similar to other business expenses such as utility costs, rents, and office supplies. Thus, advertising expenses are fully deductible under the Internal Revenue Code. From time to time, some in Congress have sought to limit or eliminate this deduction to raise revenue or pay for a new federal program. If an advertising cost cannot be deducted, it becomes a tax on advertising, causing less advertising to be purchased. Advertising stimulates a large amount of sales and jobs in the U. S. economy. This, in turn, triggers a cascade of economic activity that would not have occurred otherwise. If the advertising deduction were eliminated or restricted, this economic activity would be reduced significantly affecting all local businesses, including newspapers and other media which rely on advertising in support of journalism activities.