Add broadcasters to those looking forward to the cut in the corporate tax rate proposed by the House tax reform bill that passed the Ways & Means Committee Thursday (Nov. 9).
“NAB applauds the Senate Finance Committee’s introduction of comprehensive tax reform legislation that preserves the full and immediate deductibility of business advertising expenses," said National Association of Broadcasters President Gordon Smith. "Local broadcasters support tax reform that promotes economic growth and job creation, and it is undeniable that advertising is a stimulus for both. NAB looks forward to working with members on both sides of the Capitol towards comprehensive reform that creates a fair and sensible tax code to the benefit of American businesses and families.”
The bill, dubbed the Tax Cuts and Jobs Act, slashes the corporate tax rate (from 35% to 20%), which the President says will allow those businesses to "create jobs, raise wages, and dominate their competition around the world." It also allows businesses to immediately write off the cost of new equipment. But it does not change the immediate and full deductibility of advertising, which broadcasters and some legislators feared it might.
The bill is expected to be voted in the House next week, and then would have to be reconciled with a Senate version.
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Contributing editor John Eggerton has been an editor and/or writer on media regulation, legislation and policy for over four decades, including covering the FCC, FTC, Congress, the major media trade associations, and the federal courts. In addition to Multichannel News and Broadcasting + Cable, his work has appeared in Radio World, TV Technology, TV Fax, This Week in Consumer Electronics, Variety and the Encyclopedia Britannica.
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