Alert: Deductibility Update

July 13, 2009


To: AAF Members
From: Clark Rector, Executive Vice President-Government Affairs
Re: Deductibility Update

In a major piece of good news for the advertising industry, the healthcare reform revenue proposals released by the House Ways and Means Committee last week do not include the much discussed provision to take away the federal tax deduction for prescription drug advertising.

Instead, the committee would impose a surtax on individuals earning at least $280,000 in adjusted gross income and couples earning more than $350,000, according to Chairman Charles Rangel, D-N.Y.

This is a significant accomplishment, achieved in large part because of the outstanding grassroots response of the advertising industry. However, the threat is not completely over. The surtax may not survive. It is almost universally opposed by House Republicans and very unpopular among a significant number of Democrats as well.

In the meantime, please contact members of the House Ways and Means Committee and thank them for not including the deductibility proposal in their revenue package. Contact information can be found here. This will not only reinforce their good decision, but let them know we are still watching and interested in the issue.

Thank you for your tremendous response to this important issue. Please do not ever hesitate to contact me if you have any comments or questions..