Gannett Co. used its Tennessee newspaper subscriber lists Thursday to urge action against a proposed federal advertising tax.
When House Republicans released their new tax plan (the Tax Cuts and Jobs Act) last week, advertising insiders breathed a sigh of relief as it appeared the industry was spared.
But House lawmakers have continued to hammer out details of the plan since then. The House Ways and Means committee was set to end markups on the bill Thursday. But well before that meeting started, House and Senate leaders released new information on their plans at 4 a.m. Thursday.
Gannett Co.
That’s where Gannett found bad news, it seems. At around 9:15 a.m. Thursday, an email blast from the corporation, owner of The Commercial Appeal, said advertisers have spent $206 billion this year and that “every $1 million spent on advertising supports 67 American jobs.”
The new tax, the company said, “will slash the livelihoods of potentially 14 million Americans working in small businesses in our communities.”
“The House of Ways & Means Committee just released tax reform legislations that limit the business deductions of advertising expenses to offset costs of lowering the corporate tax rate,” reads the email. “Advertising is a very necessary expense for millions of businesses, and no different than other expenses such as rent or office supplies.
“Help preserve the businesses in our towns and cities by writing to your Member of Congress, and opposing the Advertising Tax.”
For its part, the Association of National Advertisers (ANA), the national trade group, said it would “stay vigilant” during the tax debate and would fight the advertising tax.
“#Advertising is a critical economic growth stimulator,” ANA tweeted Thursday morning. “Taxing it will slow growth in the U.S.”
