Ad Tax: Taxing What Generates Revenue

Some bad ideas never seem to die.  As reliable as Washington, DC cherry blossoms in the spring (but not nearly as welcome) are state lawmakers speculating about taxing advertising.  So far this year alone ad taxes have been discussed in Illinois, Louisiana, Oklahoma and West Virginia.  They have even been talked about in Tucson, Arizona.  At this point, none are close to being put in place, thanks at least in part to the vocal opposition of AAF members.

It is understandable that when states need revenue many lawmakers look for new taxes.  What is less understandable is why so many look to tax an activity that generates economic activity; that generates sales; and that helps generate tax revenue.  That is what advertising does. Continue Reading →