Ad Tax Deduction

Also known as Taxertising.

It is the event in which a tax payer receives a tax deduction for which the tax payer instead receives a monetary gift card that must be used. A tax payer would receive a gift card promoting a store in which they can use the gift card. This advertises the store to the tax payer which leads to future purchases with own moneys. The ad company pays the portion of the tax which the tax payer does not have to pay anymore and that extra income would be disbursed to the tax payer in the form of the gift card. The tax deduction value is set fairly in accordance to the gift card value.

(Example: An employee of McDonald's is given a $50 gift card to Macy's. The employee now pays $50 less in income tax. An advertising company has paid the employee's $50 of income tax so now the $50 of the income tax that the employee would have to have paid now goes to the employee in the form of a gift card which could be provided by the advertising company, another company or the employer. The employee can now use the gift card for any purchase in the store. The employee must use the gift card under circumstances.)

This encourages spending and it is advertising.

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