Dozens of lawmakers said in early June that they oppose revising the tax code in a way that could drive up the cost of advertising.
“Changes that will make advertising more expensive cannot be justified as a matter of tax or economic policy,” Reps Eliot Engel (D-N.Y.), Kevin Yoder (R-Kansas), and 85 other lawmakers write this week in a letter to House Speaker John Boehner (R-Ohio) and Minority Leader Nancy Pelosi (D-Calif.).
Currently, companies can deduct 100% of their ad expenses the same year they are incurred. The House is considering revising that long-standing deduction by allowing companies to deduct only 50% of ad expenses the year they are incurred. Companies would then have to amortize the remaining 50% of ad expenses over a period of 10 years.