John Abell's editorial included in package on how U.S. companies can help the debt crisis
7/19/2011 2:31:56 PM
Published in the New York Times on July 13, 2011
To the Editor:
David Leonhardt’s column provided a nice review of the debate over the deficit and the various suggestions — eliminating the Bush tax cuts, Medicare cuts, military cuts and so on — for reducing it. Not mentioned was eliminating the tax deductibility of corporate advertising.
Corporations will howl at this idea and remind us of the importance to the economy of the advertising industry. But I’m not suggesting that we eliminate, regulate or in any way restrict advertising; just don’t make us taxpayers help cover the cost of it.
Total spending on advertising in the United States is projected to be more than $300 billion this year, according to eMarketer. At a corporate tax rate of 35 percent, eliminating the deductibility of advertising would bring into the Treasury approximately an extra $100 billion per year.
JOHN D. ABELL
Lynchburg, Va., July 6, 2011
CONTACT: Brenda Edson, Director of Communications