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March 1, 2017 Dear Sens. Warren and Markey, and Reps. Neal

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March 1, 2017 Dear Sens. Warren and Markey, and Reps. Neal March 1, 2017 Dear Sens. Warren and Markey, and Reps. Neal, McGovern, Tsongas, Kennedy, Clark, Moulton, Capuano, Lynch, and Keating: As local television and radio broadcast stations across Massachusetts, we write in support of the ongoing congressional effort to reform the nation’s tax code. In particular, we appreciate and support the current House Blueprint’s preservation of tax deductibility of advertising as part of its thoughtful effort to stimulate economic growth. As Congress considers the House Blueprint and other tax reform proposals, we urge you to recognize that any modification to the current tax treatment of advertising poses significant economic harm to our local advertising partners and, by extension, our investment in local news, weather, sports, civic information, and service in the local communities you represent. For over a century, Congress has treated advertising as a fully deductible cost of doing business because, just like salaries, rent, utilities, and office supplies, it is an ordinary and necessary business expense. As you consider potential reforms to our nation’s tax system, we support your efforts to simplify the code, strengthen the economy, and make America more competitive. Importantly though, any limitations to the full, first-year deductibility of advertising will only have the opposite effects of making the tax code more complicated, slowing an engine of economic growth and job creation, and undermining the U.S. advertising and broadcasting economy that is the envy of the world. Advertising accounts for more than $172 billion of economic activity, and more than 634,000 Massachusetts jobs. Moreover, for every dollar spent on advertising, an additional $19 of economic activity is generated. Local broadcasters see this economic super-charging through those advertising partners from Pittsfield to Provincetown, from Taunton to Tyngsborough, every day. Their connection to consumers ultimately supports investment and jobs in the stores along main street, in the factories and manufacturing centers, and in the coffee shops and restaurants that are the economic heartbeat of our communities. In addition to the direct harm posed to Bay State businesses that rely on advertising to sell their products and services, any limitation to full deductibility will also harm local television and radio broadcasters like ourselves for whom advertising is the primary – if not only – source of revenue. Broadcasters rely on this advertising revenue to produce and deliver vital local and national news, emergency information and high-quality entertainment to our local communities free of charge. In Massachusetts, broadcast stations generate nearly $28 billion in economic activity and support nearly 56,000 jobs in all sectors, including auto dealers, banks, retail stores, and restaurants, among many others. Creating a disincentive to advertise has real consequences on the ability of broadcast stations to serve our communities with local programming and contribute to our hometown economies. On behalf of our advertising partners, the employees and families we collectively support, and the listeners and viewers of local broadcast radio and television, we urge you to reject any changes to the full, first-year deductibility of advertising. Sincerely, Carl Strube MBA Chairman General Manager Greg Bone Pat Ryan Port Broadcasting Managing Partner CCB-Media General Manager WQRC-FM/WKPE-FM Salem Media Boston WOCN-FM/WFCC-FM WEZE-AM/WROL-AM WWDJ-AM/WBIZ-AM Bill Fine MBA Director President and General Manager Deborah Metros General Manager Hearst Television Tom Raponi Costa Eagle Media WCVB-TV Vice President and General WNNW-AM/WCEC-AM/WMVX-AM Manager Cox Media Group WFXT-TV Thomas E. Wall Vice President and General Manager Tom McAuliffe II Cheryl Tripp-Cleveland Hall Communications MBA Director General Manager WCTK-FM/WNBH-AM/WLKW-AM President WBRK-FM/FM MyFM Media WMRC-AM/W226BU Bill Pepin Joe Flynn MBA Director Mary Menna MBA Director President and General Manager Vice President/Market Manager General Sales Manager Nexstar Media Beasley Media Group iHeart Media WWLP-TV WROR-FM/WBQT-FM/WKLB-FM WSRS-FM/WTAG-AM WMJX-FM/WBOS-FM Merril Leferman Donald St. Sauveur MBA Treasurer General Manager John Garabedian Treasurer/Human Resource Dir. Northeast Broadcasting Co., Inc. President CodComm, Inc. WXRV-FM/WFNX-FM/WFAT-AM CodComm,Inc. WPXY-FM/WFRQ-FM WPXY-FM/WFRQ-FM WHYA-FM/WKFY-FM WHYA-FM/WKFY-FM Phil Weiner Alan Chartrand MBA Associate Director Craig Swimm President – Boston Region Weiner Broadcasting MBA Secretary iHeart Media VP/Market Manager WXKS-FM/WJMN-FM Cumulus Media, Inc. WBWL-FM/WKOX-AM/WXKS-AM WMAS-FM/WHLL-AM Gary Zenobi President and General Manager Dan Guin Saga Communications, Inc. General Manager/President WAQY-FM/WLZX-FM Saga Communications, Inc. WHAI-FM/WPVQ-FM Peter E. Barry Vice President/Market Manager Gamma Broadcasting WBEC-AM/WBEC-FM/WSBS-AM WNAW-AM/WUPE-FM/WUPE-AM Bob Goodell V.P. and Market Manager Mark Hannon Cumulus Media John Morrison SVP/Market Manager WORC-FM/WXLO-FM/WWFX-FM Principal/General Manager CBS Radio, Inc. K-Zone Media Group, LLC WBMX-FM/WBZ-AM/WBZ-FM WPKZ-AM/W287BT WODS-FM/WZLX-FM Sean Davey Area President, Boston Region WHYN-AM/WHYN-FM/WRNX-FM Mark Lund MBA Director .
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