The World: Washington - Congress moots dropping DTC ad tax breaks

Advertising trade groups are bracing themselves for the possibility that Congress will rescind the tax deduction that drug companies receive on their direct-to-consumer advertising.

If the proposals were to be accepted, it would threaten to severely destabilise the $4.7 billion ad category, leaving a number of employees who work on pharmaceutical accounts fearful for their jobs.

The move would also bring uncertainty as to what would be considered "advertising" for purposes of the tax, with questions already being raised as to whether costs of building websites and putting up YouTube videos should be considered "advertising".