The National Association of Broadcasters and Motion Picture Association of America like what they see in the Republican tax reform proposal unveiled Wednesday (sept. 27).
"NAB supports today’s outline and the efforts of leaders in the U.S. Senate, House of Representatives and Administration to reform and simplify the tax code in a manner that will grow America’s economy," said NAB President Gordon Smith. "As lawmakers undertake the critical next step of crafting the details of this legislation, America’s broadcasters will continue to make the case that the tax reform goals of simplicity and economic growth will be undermined by any limitation to the full and immediate deductibility of business advertising costs. Advertising is a driving engine of the American economy, supporting millions of jobs and generating hundreds of billions in local economic activity, and this deduction must be fully retained in any successful tax reform effort."
Majority Whip Sen. John Cornyn actually cited Smith in talking up the plan on the Senate floor. He cited then Oregon Sen. Smith's observation that Democrats loved the worker, but not the job creators.
Motion Picture Association of America CEO Charles Rivkin also praised the joint announcement by the Trump Administration and congressional Republicans.
“The MPAA is encouraged by the tax reform framework released today by the Trump Administration and Congressional leaders," he said. "The U.S. film and television industry supports two million American jobs and 88,000 small businesses across all 50 states. Meaningful tax reform, as reflected in this framework, will promote our nation’s global competitiveness and encourage more domestic production and jobs in American industries, including film and television."
The plan includes capping the maximum small business tax rate at 25% and reducing the corporate tax rate to 20%. It would also allow the immediate expensing (writing off) of the cost of new investments in depreciable assets.