November 12, 2013
The proposal appears not to envision the complete elimination of the deduction. But not by much. As described by AdWeek, Camp’s proposal calls for only 50% of ad expenses to be deductible during the first year, with the remainder of the expense to be amortized over the ensuing decade. (Exactly how this makes any economic sense is not at all clear.) Such a move would obviously have a harsh effect on advertisers and a trickle-down effect on others, including broadcasters, who might suffer if a change in tax policy discourages advertising.
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