April 17, 2015
- AAF Defends Advertising Deduction
- Data Breach Legislation Moving
- Net Neutrality Challenged
AAF Defends Advertising Deduction
AAF and its allied associations in The Advertising Coalition have submitted comments to the Senate Finance Committee explaining the importance of preserving advertising’s status as a normal and necessary business expense fully deductible in the year incurred.
Working groups within both the Senate Finance and House Ways and Means Committees are examining all aspects of the corporate income tax code – including tax preferences and deductions. The previous chairmen of the committees proposed corporate tax reform plans that would have limited the deduction for advertising to 50% in the current year with the remaining 50% amortized over five (in the Senate) or 10 (in the House) years.
Both Committees have new chairmen who have pledged to start again with a blank slate, but each one is aware of the advertising provisions in their predecessors’ reform plans.
AAF and many of our local members have met with members of both Committees and their staff to explain the importance of maintaining the full deduction to the industry and the economy.
Data Breach Legislation Moving
Congress appears to be on track to passing Data Breach Notification legislation. Two bipartisan bills have received attention in the House Energy and Commerce Committee. One of them, H.R. 1770, was recently passed by the Committee, although in an odd twist all Democrats, including cosponsor Rep. Peter Welch, D-Vt., declined to support it. Welch, however stated the measure could still receive Democrat support in the full House. A competing bill has been introduced by former Committee Chairman Joe Barton, R-Texas, and Rep. Bobby Rush, D-Ill.
Likewise, two bills are alive in the Senate. Senator Bill Nelson, D-Fla., has said he is working withSenate Commerce Committee Chairman John Thune, R-S.D., to solicit his support for his legislation. Senators Tom Carper, D-Del, and Roy Blunt, R-Mo., recently introduced their own Data Security Act.
AAF, like much of industry, is concerned about the timing aspects and stringent requirements of some of the bills, but encouraged by the prospect of a single national standard so that companies are not burdened by complying with multiple inconsistent or contradictory state standards.
Net Neutrality Challenged
As expected, the Federal Communications Commission recently adopted Net Neutrality rules have come under legal assault. AT&T and CTIA-The Wireless Association have filed lawsuits in the D.C. Circuit Court of Appeals challenging the rules. The National Cable & Telecommunications Association has also file suit against the rules the same court.
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The AAF protects and promotes advertising at all levels of government through grassroots activities. Our nation-wide network monitors advertising-related legislation on local, state and federal levels. We put our members face-to-face with influential lawmakers while encouraging self-regulation as a preemptor to government intervention, when appropriate of course. To learn more about our advocacy efforts, click here.