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FreedomFace67 t1_j0bhs15 wrote

Reply to comment by ViennaLager in New Study Reveals Billions of Dollars in Political Spending by US Trade Associations, Most of It on PR - Out of $3.4 billion spent by trade associations over 10 years, nearly $2.2 billion went towards advertising and promotion, with the oil and gas industry the biggest spender. by avogadros_number

Its because marketing and advertising are 100% tax deductible.

Thats right.

The 350 billion spent on advertising in the US this year is actually 350 billion in uncollected taxes.

Edit: I be dumb this isn't correct

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LostinPowells312 t1_j0bl2n4 wrote

Theoretically, it’s, at worst, the marginal tax rate (say 35%) times $350M. But it’s also taxable to the people who this was paid out to (e.g. if you paid a marketing firm that paid employees, that money gets taxed as income).

Companies do NOT spend money to just avoid taxes because you lose more money that way. There either needs to be another purpose or a different mechanism for sheltering/hiding assets

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ViennaLager t1_j0bsb5n wrote

Why wouldnt it be? Its a operating cost.

However I assume you have some employee tax in the US? Or if its external marketing that there is some VAT or similar tax.

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cubbiesnextyr t1_j0buvqr wrote

That money is paid to some other company who reports it as income, so OP's entire point is moot. It doesn't result in "uncollected taxes" it just moves who pays the tax from one company to another.

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cubbiesnextyr t1_j0bv2yz wrote

This might be one of the most uninformed posts I've ever read on Reddit.

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