November 7, 2001

Legislative Activity

The following letter was sent to House Majority Leader Dick Armey, Whip Tom DeLay, Speaker J. Dennis Hastert and Senate Majority Leader Tom Daschle.

November 7, 2001

The Honorable Dick Armey
301 Cannon House Office Building
Washington, DC 20515-1314

Dear Majority Leader Armey:

On behalf of the members of the American Advertising Federation, I am writing to urge your support for creating a national sales tax holiday, such as that proposed in H.R. 3172.

The AAF is the only national association that represents all facets of the advertising industry, advertisers, their agencies and the media. AAF is also the national association for 50,000 advertising professionals in 210 local advertising federations across the country.

The advertising industry has been hit hard in these tough economic times. It would both benefit from a sales tax holiday and help contribute to its success. Advertising is the engine that drives our consumer economy. It helps to stimulate sales, which in turn creates jobs and grows the economy.

Advertising provides consumers with valuable information products and services, including price information. Many retailers would be expected to offer sales and advertise heavily during the sales tax holiday. This can be expected, in turn, to generate consumer activity and increase sales and spending.

With the holiday shopping season fast approaching, a sales tax holiday would provide multiple benefits. It would help increase consumer confidence and consumer spending. Consumer dollars will go further, and a precious help will be given to the struggling retail sector of our economy. Perhaps most importantly, an increase in consumer spending will provide a boost to the economy.

While a sales tax holiday will benefit consumers across the board, it would be particularly helpful to lower income Americans who spend a greater proportion of their income on sales taxes.

I urge you to support a sales tax holiday to stimulate our economy and provide tangible help to consumers, retailers, and the advertising industry.


Wallace S. Synder
President & CEO
American Advertising Federation