Advertising has been recognized and protected as an essential part of daily business operations since the Tax Code was adopted. It is not a government subsidy and is not a form of special treatment.  The Tax Code and regulations have for 100 years treated advertising as an ordinary and necessary expense of doing business just as it does the costs of employee salaries, rent, and utilities.

The entire advertising industry would face serious struggles if the Tax Code were changed to make advertising more expensive. Advertising creates millions of jobs and adds trillions of dollars to the economic activity or our country. It benefits all levels of our economy, from national manufacturers to local businesses and local broadcasters, cable operators, programmers, publishers, and advertisers. Because of the value it brings to the marketplace right here in central Florida, advertising should remain a fully deductible business expense.

We also are concerned about those who misunderstand and mischaracterize the current tax treatment of advertising as a “tax expenditure” or loophole or even a government subsidy. A tax expenditure is a form of federal spending through the Tax Code that was enacted to encourage specific behavior – it is an exception to established tax principles. In contrast, advertising always has been treated as a core business expense – it is no more a loophole or a subsidy than it is for a business to deduct the cost of employee salaries or rent.