Politics for Pros- moderated Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Politics for Pros- moderated

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: LindyBill who wrote (313927)	7/10/2009 6:40:19 AM
From: DewDiligence_on_SI	Read Replies (1) of 793955

Media Companies Fight Proposed Tax on Drug Ads [This is one of the most brazenly anti-business proposals to emerge from Congress in recent memory, IMO.] online.wsj.com ›JULY 10, 2009 By MARTIN VAUGHAN WASHINGTON -- Television networks and other media companies are rushing to try to quash a plan they say amounts to a tax on advertisements for prescription drugs. The four major broadcast networks -- Walt Disney Co.'s ABC, CBS Corp., News Corp.'s Fox and General Electric Co.'s NBC Universal -- told House Ways and Means Chairman Charles Rangel (D., N.Y.) in a Thursday letter that the plan would cost New York jobs and urged him to abandon it. "Across the U.S., advertising supports more than 21 million jobs. The current economic recession requires that we do everything we can to generate more sales and more jobs -- not adopt policies that would reduce them," the networks wrote. Advertising costs are deductible to any company as a business expense. The plan being considered by Rep. Rangel's Ways and Means committee would eliminate the deduction with respect to prescription drug advertising. The change for drug ads is on a short list of new taxes that House Ways and Means Committee members want to use to pay for a $1 trillion overhaul of the health-care system. Rep. Rangel said earlier this year that denying the deduction to pharmaceutical firms would raise $37 billion over 10 years. The Advertising Coalition -- a group that includes major trade associations for broadcasters, newspapers and magazines, plus advertisers like the Grocery Manufacturers of America -- urged President Barack Obama in a separate letter Thursday to oppose the House proposal. Media industry officials cast doubt on Mr. Rangel's claim that the change would raise $37 billion. They noted that total ad spending by the pharmaceutical industry in 2008 was about $4.2 billion. Taxed at a theoretical 35% rate over a 10-year period, that level of spending would yield closer to $15 billion.‹

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next