Advertising Deductibility: For the Sake of Speech

 The “Tax Cuts and Jobs Act,” introduced amid great fanfare on Nov. 2, has now been passed by the U.S. House of Representatives along an essentially party-line vote. The Senate’s version, introduced Nov. 9, is still undergoing intense scrutiny as groups from every quarter weigh the bill’s proposed cuts in tax rates versus the elimination of certain deductions, credits, and other tax breaks.

As ideas for reforming the tax code were tossed around in recent months and even years, one proposal – or some variation of it – would surface from time to time. This was the idea that the tax deduction for business advertising expenses should be eliminated.

This has always been an ill-considered idea (as we shall discuss below), and thus we were relieved that it did not find its way into the new tax bills of either the House or Senate. But since these bills are only the opening salvos in the difficult battle to revise the tax code, it would be worthwhile to examine why this ad-related provision should not be a part of the measure that finally reaches the president’s desk.

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Repealing Media Ownership Regulations: It’s About Time

FCC Chairman Ajit Pai has proposed the most reasonable of actions: repealing or revising 40-year-old media ownership rules that long ago outlived any marginal usefulness they might’ve once had.

This should be a no-brainer. But, Washington being what it is, entrenched interests and politicians bent on maintaining the status quo for their own purposes have pilloried Pai for trying to do something that should’ve been done decades ago.

First, the facts. On Oct. 26, Chairman Pai released an Order on Reconsideration and Notice of Proposed Rulemaking. This proceeding seeks to accomplish the following:

  • Eliminate the Newspaper/Broadcast Cross-Ownership Rule;
  • Eliminate the Radio/Television Cross-Ownership Rule; and
  • Revise the Local Television Rule to eliminate the Eight-Voices Test and to incorporate a case-by-case review provision in the Top Four Prohibition.

The proceeding would also seek to eliminate the attribution rule for television Joint Sales Agreements; retain the disclosure requirement for commercial television Shared Services Agreements; keep the Local Radio Ownership Rule; and create an incubator program to encourage new and diverse voices in the broadcast industry.

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Reflections on the Microsoft/Ireland Case

Last week the Supreme Court granted a review of a Second Circuit decision upholding Microsoft’s defiance of a U.S. warrant for the production of e-mail messages, stored in a server housed in Ireland, of a man suspected of drug trafficking.

At its simplest, the legal battle between Microsoft and law enforcement is a debate over the reach and intent of a law passed many years (1986) before the coming of age of the Internet.

Microsoft and its allies argue that that law, the Stored Communications Act (SCA), was written at a time when Congress knew virtually nothing about the Internet and what it would become, and that furthermore there is no indication in the language of the law or congressional intent that suggests it could be applied extraterritorially. Continue reading “Reflections on the Microsoft/Ireland Case”

Free Speech Week: Much To Celebrate

Free Speech Week is upon us. Or, as the headline of a story about the week written by Amy Mclean in Cablefax puts it: “What a Time for Free Speech Week.” What a time, indeed.

Just last week we saw the president raising the specter of whether the government should revoke television licenses based on the content of televised news coverage. The same president has wondered aloud (via Twitter, of course) whether the National Football League should have federal tax benefits revoked if owners continue to allow players to kneel during the National Anthem.

Speech on college campuses continues to be stifled in a variety of ways, from disinviting controversial guest speakers to relegating the expression of opinions by individuals to out-of-the-way “free speech zones.” On some campuses, students are supposed to be warned by professors before controversial topics are discussed in class, lest the students be traumatized. Continue reading “Free Speech Week: Much To Celebrate”

The Enduring Threat of Net Neutrality

The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety) by menacing it with an endless series of hobgoblins, all of them imaginary. – H.L. Mencken

No regulatory issue in memory has been quite like that of “net neutrality.” A solution in search of a problem, bankrolled and of early and particular economic benefit to two companies, and a regulation that threatens to give government sway over an industry where it had none before, network neutrality by regulation defies logic, history, and the way the world works. Other than that it’s one terrific idea.

Net neutrality was conjured up by an alliance of left-wing activists, Democratic commissioners of the FCC, and certain Internet companies and their trade associations. The regulations that followed have been on a devolutionary path, such that what was merely bad (net neutrality under Title I) became, in 2015, very much worse – net neutrality under Title II. Continue reading “The Enduring Threat of Net Neutrality”

The Real Crisis of Campus Free Expression

College campuses should be bastions of free speech.  Today, they often seem to be the very places in American society where there is the least tolerance for controversial ideas.  Unfortunately, much of the discussion of why this has occurred is based on the ad hoc experiences of a few campuses, including Berkeley, Claremont McKenna, and Middlebury that briefly gained national attention when lecturers were harassed or prevented from speaking by unruly and, occasionally, riotous crowds.

Systematic public opinion polling and anecdotal evidence suggests that the real problem of free expression on college campuses is much deeper than episodic moments of censorship: With little comment, an alternate understanding of the First Amendment has emerged among young people that can be called “the right to non-offensive speech.”  This perspective essentially carves out an exception to the right of free speech by trying to prevent expression that is seen as particularly offensive to an identifiable group, especially if that collective is defined in terms of race, ethnicity, gender, or sexual identity.

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Sunshine Week: A Timely Celebration

Sunshine Week, a nationwide event taking place this week (March 12-18), is an annual reminder that access to government information is not something we can take for granted. In fact, prior to July 4, 1967, when the Freedom of Information Act (FOIA) took effect, access to federal government information was not a given at all. It took an act of Congress to counteract the tendency of government bureaucrats to over-classify, obfuscate, and procrastinate when it came to making even innocuous information available to the public.

Sunshine Week was created by the American Society of News Editors in 2005 and is now coordinated by that group in partnership with the Reporters Committee for Freedom of the Press. With these groups heading the effort, it would be easy to think of Sunshine Week as something primarily by and for journalists. Of course having access to public information is of great interest to journalists. That kind of access is essential if the press is to perform its role as a watchdog of government at all levels in this great democracy.

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Obama’s Legacy: The Trashing of Free Speech

No administration in memory has more thoroughly undermined freedom of speech and of the press than that of President Obama.  From the White House itself, as well as the independent and executive branch agencies, have come a steady stream of policies, initiatives, and pronunciamentos that have threatened or compromised both of these constitutional rights.

Indeed, the Administration’s example has inspired like-minded actions outside of the White House.  For example, those Democratic members of Congress who actively encouraged IRS action against conservative nonprofit organizations before Lois Lerner turned to the task.

And the 16 state attorneys general, Democrats all, who have recently embarked on a campaign designed to silence people who are skeptical of the evidence of anthropogenic global warming and/or its effects and remediation.

But it’s the example of the Administration itself that is most notable.  Who could forget the performance of then-UN ambassador Susan Rice who, five days after the Benghazi attack that took the life of the American ambassador, went on national TV and blamed the attacks on an anti-Islam video shown on YouTube?

This followed by two days Secretary of State Hillary Clinton’s similar claim, and all of it despite the fact that senior Administration officials knew at the time that Benghazi was a premeditated attack that had nothing to do with the video.  >>Read More

Maines is president of The Media Institute.  The opinions expressed are his alone and not those of The Media Institute, its board, advisory councils, or contributors.  The full version of this article appeared in The Hill on July 13, 2016.

The Overblown Backlash Against Peter Thiel for Destroying Gawker

The news that pro wrestler Hulk Hogan’s lawsuit against Gawker has been financed by Silicon Valley billionaire Peter Thiel has sparked many opinions, some of them erroneous, some duplicitous, and some deeply shameful.

Before providing examples of each, a little background.  In 2007, Valleywag, a now-defunct blog site then owned by Gawker Media, outed Thiel, against his express wishes, as a homosexual.  Though he is in fact gay, Thiel was angry about this, and angry too about what he saw, and sees, as Gawker’s bullying journalism in its coverage of Silicon Valley’s tech industry.

For some apparent combination of these reasons, Thiel subsequently offered to covertly pay for Hogan’s legal fees in connection with the wrestler’s invasion of privacy suit against Gawker.  The gravamen of Hogan’s suit is that Gawker published online a secretly taped video of Hogan having sex with the wife of a friend of his.  At trial the jury awarded Hogan $140 million.

So right off the bat a couple of things are clear: Neither Hogan’s lawsuit nor Thiel’s payment of his legal fees are First Amendment issues, despite allegations to that effect in stories published by such as the New York Times>> Read More

Maines is president of The Media Institute.  The opinions expressed are his alone and not those of The Media Institute, its board, advisory councils, or contributors.  The full version of this article appeared in The Daily Caller on June 9, 2016.

Campus Protests and Blatant Attacks on Free Speech

The blatant attacks on free speech seen recently on college campuses pose a special challenge to Democrats and liberals.  This, because the illiberalism inherent in the conjuring up by campus progressives of things like “trigger warnings,” “microaggressions,” and “safe spaces” is an outgrowth of the identity politics and victim culture that have been promoted by Democrats and liberals generally.

Take, for instance, immigration and our changing racial demographics.  In a demonstration of the most corrosive kind of stereotyping, Democratic strategists like Stanley Greenberg triumphantly wave the “demographics is destiny” meme like a sword.  Whether there is any predictive value in Greenberg’s recent claim that racial minorities are “supporting Hillary Clinton by more than 2 to 1 in today’s polls,” how is it helpful to profile them as bloc voters, politically defined by their ethnicity?

Are not Hispanics, Asians, and African-Americans interested in having for themselves and their families secure middle-class lives?  And if so, might not some, perhaps many of them, come to see the governmental nostrums promoted by Democrats as being inimical to their ambitions?

The demographics-is-destiny meme crosses into the preposterous in the hands of people like the dyed-in-the-wool Democrat Chris Matthews….  >> Read More

                                   

The opinions expressed above are those of the writer and not of The Media Institute, its Board, contributors, or advisory councils.  The full version of this article appeared in The Hill on Nov. 25, 2015.