ADVERTISING: Tax Loophole

When the Excess Profits Tax was passed last month (TIME, Oct. 14), many a corporation president thought of calling his advertising manager to ask him whether he wanted a bigger piece of the budget. Reason: advertising, by Treasury standards, is a legitimate business expense; why not put the money into advertising rather than hand it over to the Government? During World War I's excess profits tax, many a luxurious good-will campaign was so prompted.

Last week Advertising & Selling discussed this loophole in the 1940 tax, ran an article by J. K. Lasser, author of Your Income Tax, the...

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