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Rubbereel

Why not try this?

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Have congress make 1 change ... just one. Eliminate the advertising tax deduction.

Sure, every media corporation and person will campaign hard against it.

Heck, they won't even allow it to be mentioned as an option. Richest corporations spend the most on ads.

The media has carved out a huge slice of any economy, up or down. At our expense.

 

I'm not anti-corporation. Just see how it works. GE owning part of ABC. Not a bad move ... under today's tax laws.

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How much revenue do you anticipate would be generated by eliminating it?

 

Well, considering the deduction runs according to the percentage of gross income, let's say 20 percent. (Some pay higher, some less).

 

That makes 20 % of all gross income of all media. TV, radio, newspapers, mailers, ads on web sites, all ways to advertise.

 

Take a guess how much this would be.

 

Think of it. Every way to advertise is partially subsidized by the taxpayers thru this tax deduction.

If this tax deduction were to go away, businesses would still need to advertise. The subsidy would be replaced by higher costs of products by the retailer.

It wouldn't effect retail suppliers because they do little advertising. It wouldn't effect how business is done, but it would bring enormous tax revenues.

 

There were plenty of reasons to create the deduction in the first place. But, with today's electronic information age, these reasons are less important.

 

Take a look at the revenue generated by one network on one 4 hour period during one Sunday evening ... the Superbowl. I'm not using it as a guide except to say this amount could be close to the total revenue for all stations any/every day 24/7/365. So, multiply that by 365 (days in a year).

And that's just TV.

 

Consider advertising could be 15 % of US Gross Domestic Product (GDP) which goes untaxed during the customer/media trade. (15% number of final cost of average retail price)

 

Why hasn't anyone looked into this?

 

Think the people who are telling everyone what (and when) to think, daily, want you thinking about taxing their industry?

 

 

 

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